The Iron ore price
fell for a fifth straight session on Tuesday and hit a more than four-month
low, as concerns about weakening Chinese demand kept the metal under pressure.
The most-traded iron
ore contract for January 2022 delivery on China’s Dalian Commodity Exchange
ended daytime trading 1.3% lower at 853 yuan ($131.64) a tonne, after earlier
touching 823 yuan, its lowest since March 26.
According to
Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were
changing hands for $162.44 a tonne, down 5.8% from Monday’s closing, pressured
by China’s move to reduce steel
output in line with its de-carbonization drive.
“The world’s steel
sector will need to prioritise de-carbonisation to meet a challenging target of
cutting carbon emissions by 75% to keep global warming to within 2 degrees Celsius,”
Wood Mackenzie said in a note.
“Advanced economies
will need to do more to curb emissions via innovative new steelmaking pathways
such as hydrogen use.”
Olympic blue
China’s iron ore
appetite may remain weak beyond 2021, as further steel output controls loom
ahead of the Beijing Winter Olympic Games in February.
Steel hub Tangshan
will extend existing curbs to March 13 next year to ensure good air quality for
the games, researcher Mysteel reported, citing a draft document issued by the
city’s environmental office.
Air pollution in
Tangshan should fall by at least 40% year-on-year in the days leading up
to and during the Games, which start on Feb. 4.
The city’s steelmakers
account for 8% of global output.
When Beijing hosted
the Summer Olympics in 2008, authorities shut a swathe of factories in the
industrial regions near the capital. The operation, dubbed “Olympic Blue”, was a success:
Beijingers enjoyed blue skies for an entire month.
The Olympics curbs
come amid a gathering nationwide push to reduce steel output after production
smashed records in the first half of the year. Mills in Tangshan — which
churned out 144 million tonnes in 2020 — will have to reduce production by 12.4
million tonnes this year, while the broader Hebei province is aiming for a 21.7
million-tonne reduction.
(With files from
Bloomberg and Reuters)
MINING.COM