- Iron ore prices recovered after tumbling below US$100 per tonne.
- The prices of metal reached multi-year high levels in May 2021.
- China is strictly trying to limit its carbon emissions, as a part of the country's long-term goal to attain carbon neutrality
Iron ore prices recovered on Wednesday after tumbling below US$100 per tonne. The prices plummeted to record low levels on Tuesday for the first time in a year on the back of a poor demand outlook and loose supply.
The prices of Iron ore with 63.5% iron content for delivery in Tianjin reached the lowest level since May 2020 and 50% below its record high levels of US$229.5 per tonne, reached in May 2021.
Benchmark 62% Fe fines imported into Northern China were trading at US$100.10 per tonne, up 4.5% from the last closing.
The prices of metal reached multi-year high levels on strong demand from the world's leading consumer – China and poor supply outlooks.
China’s move to curb emissions pushed commodity prices
China has enforced constraints on the production of steel in 2021. The country has ordered steel mills to reduce their output during the winter season before the Winter Olympics in Beijing on environmental concerns.
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The crude steel production tumbled to the lowest level since 2017 for the third consecutive month in September, as per China’s official data.
Chinese authorities forced factories and material manufacturers to keep the output low amid rising environmental concerns. More than 80% of the country’s steel mills have suspended their operations for maintenance in September.
The country is strictly trying to limit its carbon emissions, as a part of the country's long-term goal to attain carbon neutrality by 2060.
Iron ore prices recovered slightly after reaching below US$100 per tonne as China, the biggest steel producer wants to limit its emissions, as a part of the country's long-term goal to attain carbon neutrality.