Iron ore futures surrendered early gains to trade lower on Wednesday, as sentiment was spooked by resumed market talks of China's plan of trimming crude steel output to rein in oversupply plaguing the industry.

China’s latest attempt to stimulate economic growth cannot come fast for Australia’s iron ore industry where second tier miners are being rocked by falling prices.

Fund managers say the start of production at new mines in Africa, including Rio Tinto’s Simandou project, will do more to push prices down long-term.

Prices of Singapore iron ore futures rose on Tuesday, driven by expectations of increased demand as steelmakers in the northern region of China, the top consumer, are set to resume production following the conclusion of its annual parliament meeting.

Singapore iron ore futures experienced an upswing on Tuesday, fueled by optimistic projections of heightened demand from the steel industry. These expectations are tied to the anticipated resumption of production by steelmakers in northern China,