China iron ore futures rise on mine closures, but stocks high (Reuters India – June 4, 2018)

https://in.reuters.com/

BEIJING, June 5 (Reuters) – China’s Dalian iron ore futures edged up on Tuesday, lifted by market concern about tight supplies after a report that Tangshan city plans to shut hundreds of mining companies, although prices remain under pressure from mounting stockpiles at ports.

Tangshan, the country’s No.1 steelmaking city in Hebei province, said it will close 226 mining firms – half iron ore miners – that do not have legitimate licenses as part of efforts to curb illegal mining and cut pollution.

The central government, meanwhile, has sent teams of inspectors to 10 regions to check rectification measures after previous probes uncovered thousands of environmental violations. Some regions have promised to beef up anti-pollution curbs.

“The inspections may affect some iron ore output, which will help ease oversupply pressure in the market,” said analysts at Founder CIFCO Futures in a note, although they warned the impact may be offset by rising imports of the raw material.

The most-traded iron ore, for September delivery, on the Dalian Commodity Exchange rose 0.3 percent to 460.5 yuan ($71.83) a tonne by 0223 GMT.

For the rest of this article: https://in.reuters.com/article/asia-ironore/china-iron-ore-futures-rise-on-mine-closures-but-stocks-high-idINL3N1T71EO

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