The seaborne iron ore market received some stimulation on Friday February 23 despite limited trading activity, after plans to extend production restrictions in Tangshan beyond the winter heating season emerged.
Key drivers Tangshan's municipal government is seeking feedback from market participants about a plan requiring mills under its jurisdiction to lower the production rates of their blast furnaces by 10-15% from mid-March 16 until mid-November. Such a move would effectively cut Tangshan's steel production by 9.875 million tonnes during the period.The futures contracts for all ferrous products surged after news of the planned extension of production caps circulated in the market. Fortescue Metal Group was heard to have increased the downward adjustment...