FOCUS: Impact of China's 'Two-High' policy to extend into 2022 for iron ore market

The impact of China's new "Two High" energy and emissions policy is likely to continue in the iron ore market into the first quarter of 2022, sources told Fastmarkets this week.

Sentiment for the coming six months has turned increasingly bearish since the guidelines, coupled with winter production restrictions, were announced in September.
 
New guidance on 'Two-High' projects
The "Two-High" policy is a key driver of China's decarbonization strategy, especially with the National Development & Reform Commission (NDRC) confirming on September 16 its guidance for energy consumption based on gross domestic product per person (GDP per capita) and China's total consumption policy to 2035.
Nine provinces failed to meet energy consumption reduction targets in the first half of 2021 - Qinghai, Ningxia, Guangxi, Guangdong, Fujian, Xinjiang, Yunnan, Shaanxi and Jiangsu - the NDRC said.

As a result, new construction projects in these provinces, which have high pollution levels or consume a lot of energy - including steel projects - have stopped applying for construction permits, while others already...

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