Iron ore futures remained under pressure on Wednesday, marking their eighth consecutive session of decline as escalating trade tensions between the U.S. and China, along with potential steel production curbs, weighed on market sentiment.
U.S. President Donald Trump’s decision to double tariffs on Chinese goods to 20pct triggered swift retaliation from Beijing, which imposed 10-15pct tariffs on U.S. agricultural products and introduced new export restrictions targeting specific American entities. These measures have heightened concerns over a prolonged trade war.
China’s National Development and Reform Commission (NDRC) announced plans to curb steel overcapacity by cutting output but did not specify the scale. The world’s largest steel producer, which exceeded one bln tons in 2024, confirmed it will push for industry restructuring through reductions in 2025. Weak domestic demand from the real estate slump and rising global trade barriers continue to pressure the sector. Analysts warn that delaying action could worsen the industry’s challenges.
Despite maintaining its 2025 economic growth target at around 5pct and pledging additional fiscal support to counter U.S. tariffs, China’s policy measures failed to boost market confidence. However, some industry insiders remain optimistic that seasonal steel demand in March could provide support for iron ore prices. Recent data from the China Iron and Steel Association (CISA) indicated that inventories of major finished steel products increased in key Chinese cities in late February, reflecting current moderate demand levels.
On the Dalian Commodity Exchange, the most-traded May iron ore contract fell 1.34pct to 771 yuan (USD 105.9) per ton. Coke and coking coal futures also declined, dropping 2.66pct and 3.32pct to 1,631 yuan (USD 224) and 1,061.5 yuan (USD 146) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures fell 0.7pct to 3,259 yuan (USD 448) per ton, while HRC futures dropped 0.56pct to 3,376 yuan (USD 464) per ton. Wire rod futures declined 0.77pct to 3,474 yuan (USD 477) per ton. In contrast, stainless steel futures rose 0.38pct to 13,310 yuan (USD 1,829) per ton.
1 USD / 7.27 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,474 |
-0.77 |
-1.04 |
| HRC | 3,376 |
-0.56 |
-0.65 |
| Rebar | 3,259 |
-0.70 |
-0.71 |
| Stainless Steel | 13,310 |
0.38 |
0.49 |
| Iron Ore | 771 |
-1.34 |
-1.30 |
| Coke | 1,631 |
-2.66 |
-2.15 |
| Coking Coal | 1,061.5 |
-3.32 |
-2.78 |
