Iron ore futures declined in post-holiday trading on Wednesday, as the market opened cautiously, assessing trade tensions between the U.S. and China and the near-term outlook for steel demand.
The latest round of tariffs took effect on Tuesday, with U.S. President Donald Trump imposing an additional 10pct duty on all Chinese imports. In response, China implemented retaliatory tariffs on U.S. goods, reigniting trade tensions between the world’s two largest economies.
Meanwhile, economic indicators showed signs of slowing growth in China. The Caixin services PMI fell to 51 in January from 52.2 the previous month, while factory activity also weakened. The National Bureau of Statistics reported that its manufacturing purchasing managers’ index (PMI) slipped to 49.1 in January from 50.1 in December, signaling a contraction.
The steel demand outlook is expected to become clearer next week as more downstream steel users resume full operations, according to market insiders.
On the Dalian Commodity Exchange, iron ore futures declined nearly 1pct to 801 yuan (USD 111.4) per ton. Coke and coking coal futures saw sharper drops, falling 3.58pct and 3.17pct to 1,712 yuan (USD 238) and 1,098.5 yuan (USD 153) per ton, respectively.
In the Shanghai Futures Exchange, rebar futures fell 1.51pct to 3,320 yuan (USD 462) per ton, while HRC futures declined 1.64pct to 3,416 yuan (USD 475) per ton. Wire rod futures dropped 1.09pct to 3,551 yuan (USD 494) per ton, whereas stainless steel futures bucked the trend, rising 0.87pct to 13,370 yuan (USD 1,860) per ton.
1 USD / 7.18 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,551 |
-1.09 |
-1.38 |
| HRC | 3,416 |
-1.64 |
-2.02 |
| Rebar | 3,320 |
-1.51 |
-1.87 |
| Stainless Steel | 13,370 |
0.87 |
0.30 |
| Iron Ore | 801 |
-0.99 |
-1.19 |
| Coke | 1,712 |
-3.58 |
-4.26 |
| Coking Coal | 1,098.5 |
-3.17 |
-3.32 |
