Iron ore prices fell as China’s largest steel association confirmed it would proceed with production curbs, while long-awaited interest rate cuts by the People’s Bank of China failed to deliver a sustained improvement in market sentiment.
Futures fell 1.5%, paring gains in iron ore prices, when the People’s Bank of China announced monetary easing measures, including a cut in the seven-day reverse repo rate. This shift came as the impact of tariffs and production cuts offset the impact of government support measures.
The China Iron and Steel Association said this week that the government is “actively implementing and strengthening” its authority over crude steel production.
The impending production curbs have cast a shadow over the market and are expected to impact iron ore demand.
