Iron ore fell as China’s top steel association confirmed that output curbs were underway, and long-awaited PBOC rate cuts failed to deliver a sustained lift in sentiment.

Futures fell as much as 2.3%, paring gains from Wednesday when the People’s Bank of China announced easing measures, including cutting the seven-day reverse repurchase rate. The turnaround came as the impact of tariffs and output cuts outweighed the government support measures.

The China Iron and Steel Association said this week the government was “actively deploying and promoting” its crude steel production mandate. Looming output restrictions have weighed on the market and are expected to impact demand of iron ore.