Iron ore futures extended losses on Tuesday as rising trade tensions between the U.S. and China clouded the demand outlook.
China vowed to take countermeasures after former U.S. President Donald Trump threatened to impose an additional 50pct tariff on Chinese imports if Beijing does not roll back its 34pct counter-tariff on U.S. goods. If implemented, total U.S. tariffs on Chinese products would climb to 104pct.
Higher tariffs could weigh on China’s manufacturing sector, the second-largest steel consumer after real estate, pressuring iron ore demand.
Despite this, the iron ore market may find some near-term support from increased steel production, solid margins at Chinese mills, and expectations of stronger seasonal domestic demand.
On the Dalian Commodity Exchange, the most-active May iron ore contract fell 3.15pct to 738.5 yuan (USD 101.1) per ton. Coke and coking coal futures dropped 4.08pct and 4.68pct to 1,527 yuan (USD 209) and 926 yuan (USD 127) per ton, respectively.
On the Shanghai Futures Exchange, rebar declined 1.27pct to 3,039 yuan (USD 416) per ton, HRC slipped 2pct to 3,184 yuan (USD 436), and wire rod ended flat at 3,282 yuan (USD 450). Stainless steel futures lost 1.2pct, closing at 12,775 yuan (USD 1,750) per ton.
1 USD / 7.3 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,282 |
0 |
0.06 |
| HRC | 3,184 |
-2.00 |
-1.79 |
| Rebar | 3,039 |
-1.27 |
-1.45 |
| Stainless Steel | 12,775 |
-1.20 |
-1.06 |
| Iron Ore | 738.5 |
-3.15 |
-3.25 |
| Coke | 1,527 |
-4.08 |
-4.39 |
| Coking Coal | 926 |
-4.68 |
-5.51 |