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Iron ore futures fell on Thursday Aug 12, with the index hovering around a more than four-month low reached earlier this week amid concerns over control over China's steel production and signs of slowing economic growth in the largest in the world as a consumer of metal.
The most traded iron ore on the China Dalian Mercantile Exchange closed the day with a 2.2% decline to 838 yuan ($ 129.36) a tonne, canceling out profit from the previous session.
The most active September steel contract on the Singapore Exchange fell as much as 3% to $ 158.90 a tonne.
China, which accounts for more than half of global steel production, is seeking to cap full year production to no more than 2020 to reduce emissions, but restrictions on mills will be extended beyond this year.
“The continued tightening of the production limit in Hebei means that crude steel production in the country will fall more than previously expected,” analysts at Sinosteel Futures said.
Iron ore spot prices also hit more than a four-month low this week at less than $ 170 per tonne, with steel production restrictions imposed in July and signs of slowing economic activity in China, data from consultancy SteelHome showed.
Stainless steel futures were the single largest gainer in China's ferrous metals sector, with September's most traded contracts up 1.4%, boosted by strong demand and rising prices for nickel, the main raw material, on supply concerns.
Shares in steel rebar on the Shanghai Futures Exchange fell 2.1% and hot rolled coil fell 2%.
Dalian coking coal fell 1.5%, but coking coal was unchanged.
