Iron ore prices extended losses on Wednesday, with demand prospects temporarily weighed down by China considering cutting its crude steel output by around 2.5%.
The target was proposed by policymakers at a meeting last week but it has not yet been finalized, said sources familiar with the matter.
Some officials said a cut of 2.5% was too high as the economy was still recovering and the target was expected to be set before the end of June.
Benchmark 62% Fe fines imported into Northern China fell 2.33%, to $121.81 per tonne.
The most-traded May iron ore futures contract on the Dalian Commodity Exchange ended daytime trading 2.15% lower at 865.5 yuan ($125.64) a tonne, its lowest since February 15.
“The news (of crude steel output cuts) may provoke worry in the raw materials market in the short run,” said Kevin Bai, a Beijing-based steel analyst at consultancy CRU Group.
(With files from Reuters)
