Iron ore futures fell on Friday, weighed down by concerns over U.S. tariffs and escalating trade frictions affecting Chinese steel exports.
U.S. President Donald Trump announced plans to impose a new 10pct tariff on all Chinese imports. In response, China’s Commerce Ministry pledged to take necessary countermeasures, further intensifying the trade war between the world’s two largest economies. The U.S. had already implemented a 10pct tariff on February 4 and previously announced a 25pct tariff on all steel and aluminum imports, including Chinese steel.
China’s steel industry is increasingly facing protectionist measures from multiple countries. Recently, Vietnam and South Korea imposed anti-dumping duties on Chinese HRC and heavy plates, respectively.
The U.S. tariffs are also expected to disrupt approximately USD 7 bln worth of Chinese steel transshipments, impacting a crucial revenue source for China’s struggling steel sector, according to Reuters. With more Chinese steel entering global markets, competition is likely to intensify, particularly in the Middle East, one of the few regions without major trade restrictions.
Investors are now looking ahead to the upcoming “Two Sessions” parliamentary meeting, hoping for stimulus measures and pro-growth policies to support domestic consumption.
On the Dalian Commodity Exchange, the most-traded May iron ore contract dropped 0.74pct to 799.5 yuan (USD 109.7) per ton, marking a 1.17pct decline for the month. Meanwhile, coke and coking coal futures rose by 0.78pct and 0.41pct, reaching 1,684 yuan (USD 231) per ton and 1,093 yuan (USD 150) per ton, respectively.
Steel futures posted slight gains on the Shanghai Futures Exchange. Rebar futures inched up 0.09pct to 3,328 yuan (USD 457) per ton, while HRC futures increased 0.18pct to 3,425 yuan (USD 470) per ton. Wire rod futures rose 0.14pct to 3,536 yuan (USD 486) per ton, and stainless steel futures climbed 0.30pct to 13,230 yuan (USD 1,817) per ton.
1 USD / 7.28 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,536 |
0.14 |
0.03 |
| HRC | 3,425 |
0.18 |
0.12 |
| Rebar | 3,328 |
0.09 |
-0.03 |
| Stainless Steel | 13,230 |
0.30 |
0.11 |
| Iron Ore | 799.5 |
-0.74 |
-0.69 |
| Coke | 1,684 |
0.78 |
0.12 |
| Coking Coal | 1,093 |
0.41 |
-0.41 |
