The planned cap is open to review in the second half of the year depending on market conditions, Bloomberg reported. Iron ore futures fell on Thursday as pessimism spurred by tepid steel demand in China prevailed.
Weakening steel prices in China indicated lacklustre demand at a time when construction activity in the top iron ore consumer is picking up, analysts said. China's National Development and Reform Commission did not immediately respond to a request for comment.
While the government may not require steel mills to reduce production by a certain percentage this year, a target on per-ton emissions will remain in place, Bloomberg said, citing people familiar with the matter.
(Reporting by Yana Gaur in Bengaluru; editing by Jason Neely)
