The iron ore futures contract for September delivery, the most heavily traded contract on the Dalian commodity exchange, fell 0.6 percent to 928.50 yuan ($139.32) per ton, after hitting its 10-month peak yesterday.
Iron ore futures for July delivery, the heaviest contract on the Singapore stock exchange, fell 0.2 percent to $143.55.
INCREASED ITS GAINS
Iron ore had boosted its gains yesterday as Beijing announced economic reinforcements and China’s coronavirus restrictions were eased.
However, high steel prices are having a negative impact on steelmaking mills, as weeks of lockdown measures, China’s desire to end steel production and demand is now not fully recovering.
AIM TO PRODUCTION LESS
China’s crude steel production fell for the first time in six years in 2021, as the country stepped up efforts to reduce emissions from factories after hitting a record high in 2020. China aims to produce less this year compared to 2021.
On the Shanghai futures exchange, rebar prices fell 1.2 percent and hot rolled steel (HRC) coil prices fell 1.1 percent.
Stainless steel prices, on the other hand, rose slightly by 0.2 percent.
Coke prices fell 0.5 percent and coke prices fell 0.1 percent.