Iron ore futures fell on Monday as steel production curbs and rising trade frictions dampened market sentiment.
According to market sources, Chinese authorities have ordered steel producers in Tangshan, a major steel hub, to halt operations for about a week due to severe air pollution. This development added further pressure on iron ore prices.
Additionally, growing protectionist measures against Chinese steel exports weighed on the market outlook. U.S. President Donald Trump announced plans for a new 10pct tariff on all Chinese imports. This follows the 10pct tariff imposed on February 4 and the earlier 25pct tariff on all steel and aluminum imports. Meanwhile, Vietnam and South Korea have recently imposed anti-dumping duties on Chinese HRC and heavy plates, respectively.
Despite these headwinds, macroeconomic data showed signs of improvement. A private-sector survey indicated that China’s factory activity expanded at a faster pace in February, supported by stronger supply and demand and a rebound in export orders. This was in line with official PMI data, which showed the fastest manufacturing growth in three months.
Markets are now focused on the upcoming “Two Sessions” parliamentary meeting, hoping for stimulus measures and pro-growth policies to boost domestic consumption, which could support steel demand.
On the Dalian Commodity Exchange, the most-traded May iron ore contract dropped 2.81pct to 779.5 yuan (USD 107) per ton. However, coke and coking coal futures gained 0.24pct and 0.96pct, reaching 1,681.5 yuan (USD 231) and 1,104 yuan (USD 152) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures declined 0.66pct to 3,296 yuan (USD 453) per ton, while HRC futures remained flat at 3,412 yuan (USD 469) per ton. Wire rod futures edged down 0.11pct to 3,521 yuan (USD 484) per ton, while stainless steel futures inched up 0.04pct to 13,250 yuan (USD 1,820) per ton.
1 USD / 7.28 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,521 |
-0.11 |
-0.43 |
| HRC | 3,412 |
0 |
-0.38 |
| Rebar | 3,296 |
-0.66 |
-0.97 |
| Stainless Steel | 13,250 |
0.04 |
0.15 |
| Iron Ore | 779.5 |
-2.81 |
-2.57 |
| Coke | 1,681.5 |
0.24 |
-0.15 |
| Coking Coal | 1,104 |
0.96 |
1.00 |
