MANILA: Benchmark Dalian iron ore fell on Friday, under pressure along with futures contracts for other steelmaking ingredients in China, as the world’s top steel producer steps up efforts to curb output to meet its carbon emissions goal.
The most-traded September iron ore on China’s Dalian Commodity Exchange was down 2.2percent at 1,147.50 yuan ($177.19) a tonne, as of 0330 GMT, and was set for a second consecutive weekly loss. Iron ore on the Singapore Exchange shed 0.8percent to $203.30 a tonne.
Spot iron ore in China traded at $218 a tonne on Thursday, down $2 from last week, based on SteelHome consultancy data.
Dalian coking coal lost 1.3percent, while coke declined 1.4percent, extending losses into a fifth day.
“China will have to cut (steel) output by more than 50 million tonnes in the final six months of this year to meet its carbon emissions targets,” said John Meyer, analyst at London-based broking and corporate finance firm SP Angel.
“The risk for the Chinese government is that steel prices will continue to surge higher if supply is constrained, threatening the government’s broader effort to contain commodity price inflation,” he said in a note.