Iron ore prices under new pressure after China tightens steel capacity controls

Imported iron ore prices in China are facing renewed downward pressure as the stricter measures rolled out by the world's largest ore buyer to address overcapacity in its steel industry point to further constraints on the country's medium- to long-term demand for the steelmaking ingredient, Mysteel Global notes.

To add new facilities, since 2015 Chinese steelmakers have needed to meet the country's "capacity swap" regulations which demand that whenever new iron- or steelmaking capacity is introduced, old facilities in operation at the time need to be stopped and eventually scrapped. On Monday, China's Ministry of Industry and Information