Iron ore futures recovered on Wednesday as supply concerns resurfaced, lifting commodity markets after a sharp decline triggered by former U.S. President Donald Trump’s announcement of tariffs on steel and aluminum.
Iron ore and steel futures had fallen the previous day following Trump’s decision to impose a 25pct tariff on steel and aluminum imports, raising fears of a potential trade war. However, market sentiment improved after news that Australia’s largest iron ore export hub, Port of Hedland, would be closed due to Tropical Cyclone Zelia, sparking concerns over supply disruptions.
Analysts also highlighted expectations of increased steel production as mills resumed operations following China’s week-long Lunar New Year holiday.
While stronger profitability is encouraging higher output, some concerns remain that excess steel supply could weigh on prices.
On the Dalian Commodity Exchange, iron ore futures rose 0.91pct to 828.5 yuan (USD 113.3) per ton. Meanwhile, coke and coking coal futures edged down 0.58pct and 0.22pct to 1,722 yuan (USD 236) and 1,127.5 yuan (USD 154) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures slipped 0.3pct to 3,292 yuan (USD 451) per ton, while HRC futures inched up 0.15pct to 3,415 yuan (USD 467) per ton. Wire rod futures declined 0.14pct to 3,574 yuan (USD 489) per ton, and stainless steel futures dropped 0.53pct to 13,160 yuan (USD 1,801) per ton.
1 USD / 7.3 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,574 |
-0.14 |
0.39 |
| HRC | 3,415 |
0.15 |
0.82 |
| Rebar | 3,292 |
-0.30 |
0.52 |
| Stainless Steel | 13,160 |
-0.53 |
-0.30 |
| Iron Ore | 828.5 |
0.91 |
1.99 |
| Coke | 1,722 |
-0.58 |
-0.29 |
| Coking Coal | 1,127.5 |
-0.22 |
0.49 |
