Trade Review: China's policies cast shadow over price strength of iron ore
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Update time : 2021-04-12 19:39:36
Strong iron ore prices have been touted as a key indicator of an emerging post-pandemic commodity super-cycle since reaching a nine-year high of $178.45/dmt March 4, but volatility since then provides a sneak peek into how China's emissions curbs could tilt iron ore prices off-course in the months to come.
Frequent and strict steel production curbs in China have dampened sustained price strength in recent weeks, despite a recovery in downstream domestic steel demand.
Stepped-up production curbs in the steelmaking hub of Tangshan to improve air quality and in response to a central government target of reducing crude steel output in 2021 have divided the market outlook on price direction, as crimping steel output can potentially result in opposing outcomes.
