Iron ore futures rebounded on Thursday, driven by market optimism over potential stimulus measures from Beijing amid escalating trade tensions between China and the U.S., and continued deflationary pressures.
U.S. President Donald Trump announced a 90-day tariff reprieve for some countries but sharply increased tariffs on Chinese imports to 125pct, up from 104pct. China also announced a tariff hike on U.S. goods, raising rates to 84pct from 34pct, effective today.
China’s consumer price index (CPI) slipped 0.1pct YoY in March, following a 0.7pct decline in February, signaling ongoing deflation. Meanwhile, producer prices fell for the 29th consecutive month, dropping 2.5pct compared to the same period last year, according to the National Bureau of Statistics.
Investors are increasingly hopeful that Beijing will introduce new policy support to counter the effects of trade tensions and sluggish economic growth, which helped lift iron ore prices today.
Some market participants noted that destocking of HRC has recently slowed, as heightened U.S. tariffs created uncertainty in China’s manufacturing sector, one of the largest consumers of steel. Analysts also warn that steel exports, which hit a nine-year high of 110.7 mln tons in 2024, may decline sharply this year due to growing global protectionism.
On the Dalian Commodity Exchange, the most active September iron ore contract fell 2.68pct to 707 yuan (USD 96.2) per ton. Coke futures rose 1.91pct to 1,550.5 yuan (USD 211), while coking coal slipped 0.38pct to 913 yuan (USD 124) per ton.
On the Shanghai Futures Exchange, rebar and HRC prices rose slightly over 2pct to 3,139 yuan (USD 427) and 3,255 yuan (USD 443) per ton, respectively. Wire rod gained nearly 3.5pct, reaching 3,352 yuan (USD 456). Stainless steel futures, however, edged down 0.28pct, closing at 12,675 yuan (USD 1,726) per ton.
1 USD / 7.34 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,352 |
3.49 |
2.74 |
| HRC | 3,255 |
2.01 |
1.44 |
| Rebar | 3,139 |
2.01 |
1.62 |
| Stainless Steel | 12,675 |
-0.28 |
0.16 |
| Iron Ore | 707 |
3.06 |
2.55 |
| Coke | 1,550.5 |
1.91 |
1.74 |
| Coking Coal | 913 |
-0.38 |
-0.44 |