The problem is that there are more than 13m tons of HRC capacity coming online or planned to come online in the next three years.

“As a nation are very clear and very respectful of our treaties and our agreements,” Hernando said.

The MOU is to study the development of a high-quality iron ore logistics and processing facility, according to an NIDC statement circulated on Oct. 30.

Semiconductor shortages, as well as other logistical issues, have roiled automotive production in the US and around the globe since 2021. Lower automotive production rates have subsequently cut demand for steel in the sector.

The two contracts have gained momentum on high volatility in the physical market that attracted greater futures interest.

Most of the capital goods in China posted lower prices in late October compared with mid-October, official data showed Friday.

The sites receiving ResponsibleSteel certification were POSCO’s Pohang and Gwangyang Steelworks in South Korea and Tata Steel’s Jamshedpur site in India.

Since its first iron ore shipment to China in 1973, Rio Tinto has supplied China with more than 3.5 billion tons of high-quality iron ore.