This morning in metals news, two major Chinese steelmaking cities will have to extend their winter output curbs, Russian aluminum maker Rusal has once again started shipping aluminum supplies to the U.S. market and iron ore on the Dalian Commodity Exchange surged to a seven-week high.
Tangshan, Handan Extend Output Curbs
Two of the biggest steelmaking cities in China have announced they will extend their steel output curbs, according to Reuters.
Beijing imposed blanket production curbs two winters ago, but this past winter announced it was delegating production curbing authority to local governments. The cuts are aimed at tackling rampant pollution throughout the country stemming from industry, like the steel sector.
Despite the output cuts, however, China produced a record amount of steel in 2018 at 928.3 million tons.
Rusal Returns to the U.S. Market
Russian aluminum company Rusal has begun sending supplies to the U.S. market once again, Reuters reported.
The return comes as last year the aluminum giant was hit with U.S. sanctions that shocked the aluminum market last April, sending aluminum prices skyward. According to the Reuters report, the company is hoping to win back lost contracts by September (the pivotal time for the closing of supply deals for 2020).
Dalian Iron Ore Rises
Iron ore on the Dalian Commodity Exchange has jumped to a seven-week high, Reuters reported.
According to the report, the most-active iron ore contract on the DCE jumped 5.2% on Monday, up to 653.5 yuan ($97.40) per ton.