Iron ore price recovered on Thursday after falling for the past two days.
The benchmark value of 62% Fe imported into northern China was changing hands at $125.91 per tonne, up 1.4% from Wednesday's close, according to Fastmarkets MB.
Meanwhile, Benchmark Dalian iron ore dropped 3% to its lowest level in nearly two weeks as the outlook for Chinese demand dimmed.
Wanting to cut steel production to provide clean air, the Chinese government has asked factories located in more cities in northern China to cut production from November 15 to March 15.
Citi analysts said China's target of reducing steel production in the first quarter of 2022, when the Olympic Winter Games are scheduled to be held in Beijing and neighboring Hebei province, is "more aggressive than the market expectation".
“Assuming the rest of the country keeps steel production stable, national steel production is expected to drop 12% in Q1 2022, 5% annual growth in the 8th month of 2021, and 9% year-on-year decline from September to December 2021,” the analysts said. " said.
Comments
No comment yet.