Iron ore futures fell on Thursday due to uncertainty over demand, driven by escalating trade frictions between the U.S. and China. However, Beijing’s commitment to boosting domestic consumption and firm steel demand helped limit losses.
Rising trade tensions weighed on market sentiment after U.S. President Donald Trump imposed a 20pct tariff on Chinese imports within a month and warned of further measures by early April. In response, China levied 10-15pct tariffs on U.S. agricultural products and introduced new export restrictions targeting specific American entities.
To counter the economic impact, Beijing reaffirmed its 2025 growth target of around 5pct and pledged additional fiscal support to stimulate domestic consumption. However, market participants view these measures as underwhelming.
On a positive note, China’s recovering steel demand has offered some stability. Major finished steel inventories at Chinese warehouses declined in early March after rising steadily since January. Market insiders also anticipate increased steel production, which could support iron ore prices. However, long-term demand remains uncertain following reports that China’s National Development and Reform Commission (NDRC) aims to curb steel overcapacity, though details on the scale of the cuts remain unclear.
On the Dalian Commodity Exchange, the most-traded May iron ore contract dropped 0.45pct to 773 yuan (USD 106.4) per ton. Coke and coking coal futures also declined, falling 0.58pct and 0.42pct to 1,638 yuan (USD 226) and 1,070 yuan (USD 147) per ton, respectively. However, all steelmaking raw material futures posted gains compared to yesterday’s morning session.
On the Shanghai Futures Exchange, rebar futures rose 0.43pct to 3,282 yuan (USD 452) per ton, while HRC futures climbed 0.35pct to 3,396 yuan (USD 468) per ton. Wire rod futures edged up 0.09pct to 3,490 yuan (USD 481) per ton, while stainless steel futures jumped 1.28pct to 13,420 yuan (USD 1,849) per ton.
1 USD / 7.25 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,490 |
0.09 |
0.46 |
| HRC | 3,396 |
0.35 |
0.59 |
| Rebar | 3,282 |
0.43 |
0.70 |
| Stainless Steel | 13,420 |
1.28 |
0.82 |
| Iron Ore | 773 |
-0.45 |
0.26 |
| Coke | 1,638 |
-0.58 |
0.43 |
| Coking Coal | 1,070 |
-0.42 |
0.79 |
