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China Iron-Ore Futures Sink as Traders Mull Capacity Cuts

China Iron-Ore Futures Sink as Traders Mull Capacity Cuts

07 March 2017
Chinese iron-ore futures drops to a one-month low as investors become increasingly wary about demand, despite a pick-up in manufacturing activity. Dalian iron-ore futures fell to CNY653.5 per ton on Tuesday, before edging up to CNY661.5/ton. "Manufacturing activity may be going up, but output is increasingly going into inventories,"  "Consequently, we maintain our negative calls on the cyclical industries most exposed to policy tightening: construction, steel and property," reports that China is cutting steel capacity are also misleading. Even after cutbacks, China's steel output capacity would stand at 1.1 billion tons annually versus annual production of around 800 million tons.