FSUMF - China's pollution crackdown could disrupt iron ore's rally

China's attempts to drastically lower pollution levels could weaken demand for iron ore - but it hasn't happened yet.Environmental curbs on the output of steel mills in top Chinese steelmaking city Tangshan could lead to a decline of as much as 2.3% in China's crude steel production and ease supply pressures in the iron ore market, Morgan Stanley analysts say.Enforcement in Tangshan appears to have been strict so far, and potential for other steelmaking regions to adopt similar controls could lead to a tighter domestic steel market, the firm says.After the most-active futures contract for 62% iron ore fines delivered to China hit $174.94/metric ton on March 4, the highest settlement since August 2011, prices have eased in recent days, with the March contract 2.6% lower so far this month at $168.21 yesterday.But "with the Chinese economy almost fully recovered from the pandemic, demand for steel is very strong," which

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China's pollution crackdown could disrupt iron ore's rally