Iron ore prices fell on Wednesday on cooling demand as mills controlled their crude steel production, while arrivals of the steelmaking ingredient increased.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $214.79 a tonne on Wednesday, down 3.1% from Tuesday’s closing.
The most-traded iron ore futures on the Dalian Commodity Exchange for September delivery, declined 3.9% to 1,174 yuan ($181.33) per tonne at close.
The dollar also climbed, reducing the appeal of raw materials priced in the currency.
Some steel producers in China’s Jiangsu, Fujian and Yunnan provinces were told by the government to cut production as the country aims to keep its annual output no higher than it was in 2020.
Meanwhile, iron ore arrivals in China recovered last week. Portside inventories of the ingredient rose for the third week and stood at 127.34 million tonnes as of July 18, according to SteelHome consultancy.
