Concerns over China's increased production amid falling steel production as China curbs its steel industry to curb emissions have put iron ore prices down.
Iron ore futures on the Singapore Exchange fell 1.68% to $92.35 per ton on Friday. The price dropped from $120 at the beginning of October and hit a record high above $200/ton in May. Spot iron ore fell 2.19% to $97.17 on Thursday.
ANZ Research analysts wrote in a note Friday that concerns over more domestic supplies have risen after the National Development and Reform Committee, China's top economic planning committee, called for support for the country's iron ore development.
Iron ore price has come under pressure as China's steel production fell after Beijing's commitment to limit steel production to less than one billion tons in 2021 to reduce emissions. During the electricity crisis, the Chinese government also instructed steelmakers to reduce production to ease the pressure on the country's electricity grid.
According to data compiled by ANZ Research, China's steel production fell 13 percent year on year to 243.8 million tons in the third quarter of this year. But high-frequency data shows that the decline accelerated in October.
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