Iron ore futures fell on Wednesday as escalating trade tensions and concerns over excess steel supply weighed on market sentiment, despite supply disruptions in Australia.
The White House announced that President Donald Trump could unveil his reciprocal tariff plan on Thursday. Trump previously stated his intent to impose tariffs on countries that levy import duties on U.S. goods.
Meanwhile, rising steel production after the Chinese New Year has fueled fears of oversupply, which could pressure prices and impact steel mill margins. Data from the China Iron and Steel Association (CISA) shows that in late January 2025, steel inventory at key steel enterprises reached 15.35 mln tons, up 18.7pct from ten days earlier and 24.1pct YoY.
On Tuesday, iron ore futures had gained following news that Australia’s largest iron ore export hub, Port of Hedland, would be closed due to Tropical Cyclone Zelia. The cyclone, now upgraded to Category 5, is expected to make landfall on Friday in the remote Pilbara region, according to Australia’s Bureau of Meteorology.
On the Dalian Commodity Exchange, iron ore futures dropped 1.52pct to 808 yuan (USD 110.5) per ton. Coke and coking coal futures also declined, down 1.63pct and 1.96pct to 1,692.5 yuan (USD 232) and 1,098.5 yuan (USD 150) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures fell 0.32pct to 3,265 yuan (USD 447) per ton, while HRC futures declined 0.32pct to 3,387 yuan (USD 463) per ton. Wire rod futures slipped 0.4pct to 3,527 yuan (USD 483) per ton. Stainless steel futures, however, edged up 0.5pct to 13,090 yuan (USD 1,791) 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 | 3,527 |
-0.40 |
-1.33 |
| HRC | 3,387 |
-0.32 |
-0.83 |
| Rebar | 3,265 |
-0.46 |
-0.83 |
| Stainless Steel | 13,090 |
0.50 |
-0.53 |
| Iron Ore | 808 |
-1.52 |
-2.54 |
| Coke | 1,692.5 |
-1.63 |
-1.74 |
| Coking Coal | 1,098.5 |
-1.96 |
-2.64 |
