Dalian iron ore futures continued to decline on Friday as weak steel demand and escalating trade tensions weighed on market sentiment.
Steel consumption in China remained sluggish after the Lunar New Year holidays, while rising steel production raised concerns about an oversupply.
According to the China Iron and Steel Association (CISA), daily crude steel output at key mills averaged 2.109 mln tons in early February (Feb. 1-10), up 1.8pct from late January. Meanwhile, finished steel inventories rose 5.6pct to 16.21 mln tons over the same period.
Trade tensions escalated after U.S. President Donald Trump directed his economic team to draft plans for reciprocal tariffs on countries that impose duties on U.S. imports, heightening fears of a global trade war. Trump had already announced tariffs on all steel and aluminum imports starting March 12, along with a 10pct tariff on all Chinese imports.
Supply disruptions in Australia failed to lift iron ore prices. Cyclone Zelia made landfall on Australia’s west coast on Friday, bringing heavy rain and strong winds to the world’s largest iron ore hub. The storm forced the closure of Port Hedland, the world’s busiest iron ore export terminal, on Wednesday.
On the Dalian Commodity Exchange, the most-traded May iron ore contract fell 0.98pct to 810.5 yuan (USD 111) per ton, marking a weekly decline of 1.16pct. Coke and coking coal futures also dropped, losing 1.41pct and 2.21pct to 1,681.5 yuan (USD 230) and 1,085 yuan (USD 149) per ton, respectively.
In Shanghai, rebar futures fell 0.53pct to 3,262 yuan (USD 447) per ton, while HRC futures declined by the same margin to 3,377 yuan (USD 463) per ton. Wire rod futures slid 0.71pct to 3,511 yuan (USD 481) per ton, and stainless steel futures dipped 0.15pct to 13,090 yuan (USD 1,794) per ton.
1 USD / 7.29 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,511 |
-0.71 |
-0.46 |
| HRC | 3,377 |
-0.53 |
-0.30 |
| Rebar | 3,262 |
-0.46 |
-0.09 |
| Stainless Steel | 13,090 |
-0.15 |
0 |
| Iron Ore | 810.5 |
-0.98 |
0.31 |
| Coke | 1,681.5 |
-1.41 |
-0.65 |
| Coking Coal | 1,085 |
-2.21 |
-2.24 |
