Iron ore futures decline amid rising protectionist measures on Chinese steel

Dalian iron ore futures fell on Monday as growing protectionist measures against Chinese steel dampened market sentiment.

Vietnam, the largest market for Chinese HRC, has announced temporary anti-dumping duties on HRC imports from China. Market sources indicate that while some exemptions may apply to companies exporting downstream products, a significant portion of HRC imports is typically used for domestic consumption.

Meanwhile, South Korea, another major importer of Chinese steel, recently imposed provisional anti-dumping duties on heavy plates and is continuing its investigation into Chinese HRC imports.

In recent months, Chinese steel has increasingly faced trade restrictions, with several major markets, including Turkey, implementing protectionist measures to safeguard their domestic industries.

However, losses in iron ore futures were limited by supply concerns and policy expectations. Weather-related disruptions have reduced iron ore shipments from major Australian miners, though supply is expected to recover as conditions improve. Additionally, strengthening domestic steel demand and anticipation of economic stimulus measures ahead of China’s 14th National People’s Congress next month have provided some support to the market.

On the Dalian Commodity Exchange, the most-traded May iron ore contract declined 0.77pct to 832.5 yuan (USD 114.7) per ton. Coke and coking coal futures also dropped, falling 2.89pct to 1,695.5 yuan (USD 234) per ton and 1.99pct to 1,108 yuan (USD 153) per ton, respectively.

In the Shanghai Futures Exchange, rebar futures declined 0.77pct to 3,340 yuan (USD 460) per ton, HRC futures fell 1.24pct to 3,431 yuan (USD 473) per ton and wire rod futures edged down 0.23pct to 3,527 yuan (USD 486) per ton. Stainless steel futures also dipped 0.23pct to 13,275 yuan (USD 1,830) per ton.

1 USD / 7.25 yuan