Iron-ore falls as China steel body says output curbs under way
Iron-ore fell as China’s top steel association confirmed that output curbs were under way, and long-awaited PBOC rate cuts failed to deliver a sustained lift in sentiment.
Futures fell as much as 1.5%, paring gains from Wednesday when the People’s Bank of China announced easing measures, including cutting the seven-day reverse repurchase rate. The turnaround came as the impact of tariffs and output cuts outweighed the government support measures.
The China Iron and Steel Association said this week the government was “actively deploying and promoting” its crude steel production mandate. Looming output restrictions have weighed on the market and are expected to impact demand of iron ore.
“The main task facing the steel industry is how to maintain a balance between supply and demand under limited market demand,” Wang Bin, director of CISA’s planning and development department, said at a recent press conference.
China announced in March it would push the steel industry to limit output in an attempt to ease a massive glut and restore profitability at mills. Annual production in the world’s biggest producer and consumer of the alloy has remained stubbornly above one-billion tons. Exact details of the size or timeframe of the cuts have yet to be clarified.
Supply in the iron ore market is expected to ramp up toward the end of the year, with Guinea’s Simandou mine coming online.
Iron ore futures in Singapore fell 1.4% to $96.90 a ton at 12:35 p.m. local time. Yuan-priced futures on the Dalian exchange dropped 1.5%. Shanghai steel contracts also retreated.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rentech provides renewable energy products and services to the local and selected African markets. Supplying inverters, lithium and lead-acid...
VISIT SHOWROOM
John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
