NGLOY - Iron ore tilts lower on production cuts at top China steelmaking hub

Iron ore futures fell to near a 10-day low following an order by Chinese authorities to cut production at the big Tangshan steelmaking hub in an effort to curb pollution.

Tangshan's government said it is launching a level 2 emergency response to deal with the forecast of heavy air pollution this week, but there is no word on how long the restrictions might last.

The most-traded May iron ore futures contract ( SCO:COM ) on the Dalian Commodity Exchange ended daytime traded 2.5% lower at 885.5 yuan/metric ton ($127.14).

The benchmark March iron ore contract on the Singapore Exchange recently traded at $123.40/ton.

Potentially relevant companies include BHP ( NYSE: BHP ), Rio Tinto ( NYSE: RIO ), Vale ( VALE ), Fortescue ( OTCQX:FSUMF ), Glencore ( OTCPK:GLCNF ) ( OTCPK:GLNCY ) and Anglo American ( OTCQX:AAUKF ) ( OTCQX:NGLOY ).

The push coincides with a drive by the authorities to rein in gains in iron ore prices, as a leading Chinese commodities exchange recently tweaked iron ore trading rules following a series of warnings from officials that the market had run ahead of itself.

BHP ( BHP ) recently reported a 32% decline in H1 net profit, reflecting a downturn in prices for iron ore and other industrial metals .

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