Iron Ore Slips as China Curbs Steel Output

2026-02-26 06:52 By Jam Kaimo Samonte 1 min. read

Iron ore futures dropped to CNY 750 per ton, hovering near multi-month lows after Chinese authorities ordered steel mills in Northern China to temporarily reduce output to curb pollution during the annual meetings of the National People's Congress.

Under the “blue skies” directive, mills were instructed to cut blast furnace production by 30% for one week starting March 4 to limit emissions in Beijing during the high-profile political gatherings.

Analysts expect steel demand to weaken in the first half of the year amid ongoing property sector fragility and cautious industrial activity.

Oversupply pressures also lingered, with iron ore inventories at major Chinese ports climbing to their highest levels since February 2022.

Meanwhile, traders continued to evaluate the fallout from the US Supreme Court’s tariff ruling, which could spur additional protectionist measures and potentially disrupt global trade flows.



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