Chinese iron ore hits contract low on slashed steel output

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Publish time: 2nd January, 2014      Source: ChinaCCM
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It is reported that top Chinese steel mills are forced to cut output as the government looks to take more measures with tougher regulations to curb pollution.

Falling production and a credit crunch have pushed mills to reduce purchases of raw material iron ore, making China's iron ore futures hit a contract low and steel futures touched a near six-week trough last Thursday.

Steel demand has also slowed as cold weather in north China hampers construction projects. Trading is also thinning as the end of the year approaches.

The most-traded iron ore futures for May delivery hit a session low to RMB 885 (US$150) a ton last Thursday on the Dalian Commodity Exchange, the lowest point since the contract was launched in October.