Grange's Iron ore pellets at A$427/tonne, page-142

Iron ore pellets will be in higher demand as China tries to cut pollution.

Chinese steel hub implements output curb for rest of 2021

• The city of Tangshan, China’s top steel making hub, has started implementing a 30% cut in output that will last for the rest of this year, Mysteel reports.
• The programme of cuts is set to run from July 2^nd to December 31^st – affecting those mills that don’t meet ultra-low emissions targets.
• China has pledged that last years steel output of just over 1bn tons would be a high water mark for an industry that contributes more than 15% of national emissions.
• China produced 473mt in the first five months of this year, and would have to cut output by more than 50mt in the final six months of this year in order to meet its goals.
• The risk for the Chinese government is that steel prices will continue to surge higher if supply is constrained, threatening the gov’s broader effort to contain commodity price inflation.