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Iron Ore Concerns Weigh

AUD

Some concerns over iron ore prices weighing on AUD. Iron ore futures in Singapore fell for a fourth day, and the sixth decline in the last seven sessions, set for the longest losing run in more than three months. Downward pressure comes as China reaffirmed a commitment to cutting steel production this year and investors weighed tighter margins at mills.

  • China announced a series of measures earlier this week designed to accelerate a reduction of steel output. Among these are a strict ban on illegal new capacity, promoting mergers, and a promises that supply will be reduced in 2021, according to the Ministry of Industry and Information Technology.
  • Output data will be key for the direction of Iron ore. Australia's Fortescue Metals Group will report figures on Thursday, and Brazil's Vale follows on Feb. 3. Markets also look to Brazil, another large exporter, for output clues. There is still uncertainty regarding the impact of the fire at Vale's Ponta da Madeira port.

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