China’s iron ore futures dipped on Wednesday, weighed down by concerns over a likely reduction in output by steel mills hit by losses due to high production costs and weak demand.

Shrinking steel profit margins in the world’s top producer of the construction and manufacturing material may force mills to put their facilities under maintenance, reducing demand for iron ore and other raw materials, analysts said.

The most-active May iron ore contract on China’s Dalian Commodity Exchange ended daytime trading 0.2% lower at 1,041.50 yuan ($161.11) a tonne, after earlier hitting a two-week low of 1,015.50 yuan.

Spot iron ore in China traded at $167.50 a tonne on Tuesday, the weakest since Jan. 4, according to SteelHome consultancy.

Iron ore’s February contract on the Singapore Exchange rose 0.7% to $163.20 a tonne by 0715 GMT, reversing early losses.