Iron ore futures declined in post-holiday trading on Tuesday, pressured by renewed demand concerns and the U.S. decision to double steel tariffs.
Market sentiment was further dampened by escalating trade tensions, as U.S. President Trump announced plans to raise tariffs on imported steel and aluminum from 25pct to 50pct, effective June 4, in an effort to support the U.S. manufacturing sector.
Weak Chinese economic data added to the bearish tone. The Caixin Manufacturing PMI fell sharply to 48.3 in May from 50.4 in April, marking the first contraction in eight months and the lowest reading for export orders since July 2023. China’s official manufacturing PMI also remained in contraction at 49.5. Meanwhile, the steel industry PMI dropped to 46.4, ending three consecutive months of growth due to declining domestic demand and lower production.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 1.14pct to 695.5 yuan (USD 96.5) per ton. Coke futures slipped 1.1pct to 1,299 yuan (USD 180), while coking coal futures dropped 3pct to 719 yuan (USD 99.8) per ton.
On the Shanghai Futures Exchange, rebar futures declined 1.18pct to 2,928 yuan (USD 407) per ton, and HRC futures fell 1.04pct to 3,052 yuan (USD 424). Wire rod futures were unchanged at 3,262 yuan (USD 453), while stainless steel futures edged down 0.59pct to 12,630 yuan (USD 1,754) per ton.
1 USD / 7.2 yuan
CHINESE STEEL FUTURES
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Date: 6/3/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,262 |
0 |
-0.06 |
| HRC | 3,052 |
-1.04 |
-0.79 |
| Rebar | 2,928 |
-1.18 |
-1.13 |
| Stainless Steel | 12,630 |
-0.59 |
-0.44 |
| Iron Ore | 695.5 |
-1.14 |
-0.93 |
| Coke | 1,299 |
-1.10 |
-0.69 |
| Coking Coal | 719 |
-3.03 |
-0.97 |