Iron ore futures continued to decline on Wednesday, weighed down by escalating trade tensions between the U.S. and China, which have intensified concerns over global steel demand.
The U.S. confirmed it will impose 104pct tariffs on Chinese imports, following Beijing’s refusal to withdraw retaliatory measures against U.S. goods. Chinese Foreign Ministry spokesperson Lin Jian stated that Beijing will continue to take firm and decisive actions to safeguard its legitimate rights and interests.
The deteriorating outlook for steel demand, further strained by the growing rift between the world’s two largest economies, has placed additional pressure on steel and raw material prices.
Market participants are now looking to Beijing for potential stimulus measures to bolster domestic demand and mitigate the impact of the new tariffs.
On the Dalian Commodity Exchange, the most-active September iron ore contract dropped 2.68pct to 689 yuan (USD 94) per ton. Coke and coking coal futures declined 3.24pct and 4.03pct, to 1,523.5 yuan (USD 208) and 917 yuan (USD 125), respectively.
On the Shanghai Futures Exchange, rebar fell 1.37pct to 3,088 yuan (USD 422) per ton, while hot-rolled coil (HRC) slipped 1.11pct to 3,208 yuan (USD 438). Wire rod declined 0.40pct to 3,260 yuan (USD 445), and stainless steel futures dropped 1.9pct, closing at 12,655 yuan (USD 1,728) per ton.
1 USD / 7.32 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,260 |
-0.40 |
-0.67 |
| HRC | 3,208 |
-1.11 |
0.75 |
| Rebar | 3,088 |
-1.37 |
1.59 |
| Stainless Steel | 12,655 |
-1.90 |
-0.95 |
| Iron Ore | 689 |
-2.68 |
-7.18 |
| Coke | 1,523.5 |
-3.24 |
-0.23 |
| Coking Coal | 917 |
-4.03 |
-0.98 |