Iron ore: price bends on China’s move to cut steel production

China’s iron ore price fell for the fourth consecutive session, dropping more than 2.70% to its lowest level in nearly three weeks on prospects of easing demand on the government’s decision to cut production. The price of Iron ore 62% FE – CFR China dollar/ton fell from recent highs at 219.77 to the July 22 close at 213.81.

Some steel producers in China’s Jiangsu, Fujian and Yunnan provinces have been ordered by the government to cut production as the country aims to keep annual output no higher than in 2020.

The government has a relatively strong determination to control steel production this year, which could affect demand for raw materials.