The Dalian iron ore futures experienced a decrease on Monday as reports emerged regarding Tangshan ordered steel mills to reduce production in order to combat air pollution
According to the reports, Tangshan, a major steel-producing city in China, has asked steel mills to restrict their steel and sintering operations by 30-50pct throughout July, which is expected to result in a reduction in iron ore demand.
The September contract for iron ore on the Dalian Commodity Exchange declined by 1.68pct, settling at 819 yuan (USD 112.8) per ton.
Dalian coke and coking coal futures also saw declines, with a decrease of 0.8pct and 1.08pct respectively. The prices reached 2,100 yuan (USD 289) per ton for coke and 1,331 yuan (USD 183) per ton for coking coal.
Steel futures in the Shanghai Futures Exchange managed to recover from earlier losses and closed with slight gains. Rebar futures were up by 0.56pct to 3,767 yuan (USD 519) per ton, while HRC futures increased by 0.42pct to 3,858 yuan (USD 532) per ton. Similarly, wire rod futures posted slight gains of 0.33pct, reaching 4,256 yuan (USD 587) per ton, while stainless steel futures remained almost flat at 14,705 yuan (USD 2,027) per ton.
1 USD / 7.25 yuan
