Iron ore price lowest in 3 months on China’s rumored plan to cap steel output

Pessimism about steel demand in China weighed on iron ore prices on Thursday, even as traders watched a powerful cyclone that could disrupt shipments from top supplier Australia.

China’s unconfirmed plan to limit annual crude steel output, as it seeks to curb iron ore price speculation, has been a drag on the market.China is set to release the plan by the end of this month, capping domestic steelmakers’ output at 2022 levels, Bloomberg reported.

Struggling to reduce carbon emissions and meet climate commitments, the Chinese government has long had the heavily polluting steel sector in its sights. The industry accounts for about 15% of national emissions, second only to electricity generation.

Benchmark 62% Fe fines imported into Northern China fell 1.47% on Thursday, to $118.29 per tonne, the lowest since January.