Iron ore dilemma - will China actually cut steel output?

China's vast steel sector, and the iron ore industry feeding it, is grappling with a seemingly contradictory policy impulse that it should produce less this year, even as demand remains strong amid post-pandemic stimulus spending. China produced a record 1.05 billion tone of steel in 2020, helping to drive spot iron ore prices to a one-year peak of $175.40 a tone on Dec. 21. Over the year, prices rose 75 percent. The spot price of benchmark 62 percent iron ore delivered to North China, as assessed by price reporting agency Argus, has since retreated back below $160 a tone. But the price has been above $150 for...