top of page
  • Writer's pictureStephen Fodor

China iron ore futures drop on Tangshan curbs, steel resilient amid firm demand

March 16, 2021

(Reuters) - Chinese iron ore futures dropped more than 6% on Monday after top steelmaking city Tangshan pledged to cut emissions by 50% during the heavy pollution period and punish those who fail to implement production curbs.

The most-active iron ore on the Dalian Commodity Exchange , for May delivery, slumped as much as 6.3% to 1,005 yuan ($154.55) a tonne, the lowest since Feb. 8. The contract fell 4.2% to 1,028 yuan by 0330 GMT.

Prices for other steelmaking ingredients also slumped on concerns of further output controls.

Dalian coking coal futures dived 4.1% to 1,470 yuan per tonne.

Coke futures were down 3.6% to 2,216 yuan, after hitting as low as 2,208 yuan a tonne, the lowest since Nov.5, 2020.

Steel futures on the Shanghai Futures Exchange, however, were range-bound.

China’s property and infrastructure investment surged 38.3% and 36.6% in the first two months, respectively, the statistics bureau said.

Industrial output in the world’s second-largest economy also beat market expectations in the Jan-Feb period helped with brisk recovery in the manufacturing sector.

Construction rebar on the Shanghai bourse dipped 0.5% to 4,734 yuan a tonne.

Hot rolled coil, used in cars and home appliances, gained 0.2% to 5,023 yuan a tonne.

Stainless steel futures slipped 0.4% to 14,000 yuan a tonne.


* Portside inventories of iron ore in China gained by 1.4 million tonnes to 130.9 million tonnes as of Mar.12 from the week earlier, data compiled by SteelHome showed. SH-TOT-IRONINV

* China’s crude steel output rose 12.9% in Jan-Feb on an annual basis, as mills increased production in expectation of more demand from the construction and manufacturing sectors.

* China’s second biggest steelmaker HBIS Group vowed to bring its carbon emissions to a peak in 2022.

$1 = 6.5028 yuan Reporting by Min Zhang and Dominique Patton; editing by Uttaresh.V

Do You Need Customs Brokerage Help? You can contact us at

6 views0 comments

Recent Posts

See All

Importer Pleads Guilty to Duty Evasion

The owner of a U.S. based import business faces a maximum penalty of five years in prison, a $250,000 fine, a three-year term of supervised release, and a payment of $1,090,000 in restitution. The imp

Subscribe to My Linkedin Newsletter

To help you keep up to date on topics the impact the U.S. international trade community, be sure to read my latest newsletter and subscribe for future updates too.


  • Twitter
  • LinkedIn
  • Facebook
  • YouTube
  • Instagram

need assistance from a licensed CUSTOMS broker?

Thanks for submitting!

bottom of page