Iron ore plunges as Tangshan applies measures to cut emissions

摘要

Iron ore fell to a six-week low on Friday as Tangshan city has taken strict measures to reduce emissions which include limitation of steel production till the end of the year. Australian iron ore fines 62% Fe dropped by $4/t to $160/t CFR, the lowest since February 5, while its futures on the DCE slumped by RMB 47/t ($7.2/t) on a daily basis. Despite an evident recovery of downstream demand in the finished steel segment, sentiment in the raw material market was strongly affected by the announcement of the Tangshan city government about restrictions to be imposed on local steel mills for the rest of the year.