Iron ore price is fizzling out on Chinese production curtailments

IRON ORE, one of the world’s hottest commodities, is fizzling out.

The key ingredient in steelmaking fell to below $130 (R1 845) a ton in the second week of September.

Global economics website tradingeconomics.com said iron ore was below the $230 a ton level recorded in May.

China wants to put the brakes on steel production to meet its targets of reducing greenhouse gas emissions.

“The Chinese city of Handan became the latest region to implement restrictions on steel output after the provinces of Anhui, Gansu, Fujian, Jiangsu, Jiangxi, Shandong, and Yunnan were told to limit their production to 2020 volumes amid China’s efforts to curb carbon emissions,” said tradingeconomics.com.