Iron ore prices fell on Thursday amid concerns over steel production controls in China.
According to Fastmarkets MB, the 62% Fe gauge imported into northern China was changing hands at $162.96 per tonne, down 1.8% from Wednesday's close.
China's top-traded iron ore contract on the Dalian Commodity Exchange ended day trading at 838 yuan ($129.36) per tonne, down 2.2%, erasing gains from the previous session.
China, which accounts for more than half of the world's steel production, is trying to limit its full-year production to 2020 volume to reduce emissions, but the restrictions imposed on producers will go beyond that.
Officials in Tangshan city, the steelmaking hub in Hebei province, have released an air quality control plan for the Beijing Winter Olympics in February, implementing ultra-low emission standards in the steel and energy industries through March.
"The continued tightening of Hebei's production limit means that the country's crude steel output will fall more than previously expected," Sinosteel Futures analysts wrote in a note. said.
Spot iron ore prices also fell to a four-month low below $170 per tonne this week, as steel production restrictions started since July and signs of slowdown in Chinese economic activity appeared, according to SteelHome advisory data.
Stainless steel futures were the sole winners in China's ferrous metals complex; The top-traded September contract rose 1.4% amid strong demand and core raw material nickel prices soared on supply concerns.
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