The iron ore futures prices on the Singapore Exchange and the Dalian Commodity Exchange (DCE) dropped due to China’s policy to cut crude steel output. The iron ore futures prices on the Singapore Exchange fell by 3% and that on the DCE decreased by 3.3%.

Iron ore prices have skyrocketed recently; however, China’s policy to reduce crude steel output will impact iron ore prices severely, and the demand for Australian iron ore may decline accordingly.