Iron ore prices rise 47% in two months

Steelmaking raw materials rose 4% to $ 78.10 a tonne, the highest since April 7, as Chinese steelmakers accelerate production ahead of sanctioned winter cuts, according to data provided by The Steel Index. Beijing wants to cut production by as much as 50% during the winter months to combat smog, especially in its capital and surrounding areas.

The iron ore price is now trading 47% higher than its 2017 lows of just two months ago, as China's tackling pollution in heavy industries forces the country's metallurgists to import high-quality iron ore and avoid domestic producers who compete with ore supplies. with an iron content of 20%.

Against this backdrop, in Shanghai, rebar futures - the world's most traded steel contract - rose 3.6%, reaching a 4-year high. Dalian coking coal futures were up 3.6%, while iron ore contracts closed 6.6% higher, gaining 11% in the past three sessions.

Steel production in China last month rose more than 10% from a year ago to a record 74 million tonnes as traders worry about declining steel shipments in the new year.

In Hebei province, a key manufacturing region in China, steelmakers have said they will comply with strict new emissions regulations by the September 1 deadline. During the first six months of the year, about 120 million tonnes of substandard steel production capacity was shut down.