Iron ore prices have fallen below $US100 per tonne for the first time since mid-January, driven by production cuts at steel mills in Tangshan, China. These measures aim to improve air quality in Beijing during the National People’s Congress (NPC), which begins on Wednesday.
Specifically, Tangshan Ruifeng Steel plans to shut down a 1,080 m³ blast furnace starting from March 4, with an expected downtime of eight days, impacting pig iron production by 2,800 mt/day.
Concerns about overcapacity in the steel industry persist, with market discussions suggesting that China may reduce crude steel output by 50 million tons in 2025.
In the futures market, contracts in Singapore dropped as much as 2.6 percent, reaching their lowest level since January 14, following the production halts in Tangshan.
The NPC is expected to address these industry challenges, with speculation that Beijing will implement capacity cuts as the steel sector grapples with declining domestic demand and the impact of trade tensions on export prospects.
Additionally, other industrial metals, including copper and aluminium, have experienced price declines, reflecting broader market anxieties.
