Iron ore below $200/t as market weakens in China
Iron ore resumed sliding after a short break amid more temporary production cuts in Tangshan city, higher supply and renewed trade tensions between China and US.
Australian iron ore fines 62% dropped by $2/t to $199/t CFR, falling below $200/t CFR for the first time since May 31. Spot prices followed a RMB 27/t ($4.2/t) daily plunge in the raw material September contracts on the DCE. Further weakening of market balance and international trade conflict impacted the iron ore price.
Short-term expectations for iron ore demand worsened again with a new round of output restrictions in Tangshan. The city authorities ordered local steel producers ranking A to cut sintering, pelletizing, BF, converter and lime kilns operations by 20% till August 1, while all other mills have to reduce these operations by 50%.