Iron ore gets a boost after report that China aims to cut steel output - ING

China will aim to cut steel production and curb new capacity between 2025 and 2026, according to Reuters. A planning document issued jointly by multiple Chinese ministries outlined proposals to reduce steel output, given excess supply and insufficient demand. Iron ore in Singapore rose as much as 1.7% to above $104/t, its highest in more than two weeks, ING's commodity experts Ewa Manthey and Warren Patterson note.

China's steel exports from January to July hit an all-time high

"The document did not set targets for output cuts pledged by the government earlier this year. It did, however, set a goal of raising the industry's 'value-add' by 4%, investing in new technology and promoting steel use in infrastructure and residential construction, Reuters reports. Crude steel output fell 3.1% in the first seven months of this year."

"The report said China would achieve annual steel output cuts by forcing the closure of outdated and inefficient furnaces and supporting the development of advanced enterprises."

"Beijing will increase efforts to ensure the supply and price stability of raw materials, including iron ore and coking coal, according to the document. Also, efforts will be made to enhance the management of steel exports, the document said, without elaborating. China's steel exports surged over the past two years, triggering anti-dumping measures from trade partners. China's steel exports from January to July hit an all-time high and are on track to surpass a record high hit in 2015."