Iron ore futures tumbled on Monday amid rising tensions between the United States and China, casting a shadow over the global demand outlook. The deepening trade dispute has heightened investor concerns, further weighed down by slumping stock markets in China and across the globe. Market sentiment soured as hopes for a resolution between Beijing and Washington continued to fade.
Last week, the U.S. imposed 34pct tariffs on a wide range of Chinese imports. In response, China retaliated with an equivalent 34pct tariff on all U.S. imports, escalating the standoff between the world’s two largest economies.
Despite the negative sentiment, analysts believe iron ore could see short-term support. Chinese steel producers are boosting output in anticipation of strong seasonal demand this spring, supported by healthy profit margins.
On the Dalian Commodity Exchange, the most-active May iron ore contract dropped 3.36pct to 762.5 yuan (USD 104.60) per ton. Coke and coking coal futures also weakened, falling 2.21pct and 2.06pct respectively, to 1,594 yuan (USD 219) and 977 yuan (USD 134) per ton.
On the Shanghai Futures Exchange, rebar futures declined 2.59pct to 3,083 yuan (USD 423) per ton, while HRC futures fell 3.05pct to 3,241 yuan (USD 445) per ton. Wire rod futures dropped 3.5pct to 3,280 yuan (USD 450) per ton, and stainless steel futures slumped 3.87pct to 12,910 yuan (USD 1,772) per ton.
1 USD / 7.26 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,280 |
-3.50 |
-4.02 |
| HRC | 3,241 |
-3.05 |
-2.96 |
| Rebar | 3,083 |
-2.59 |
-2.63 |
| Stainless Steel | 12,910 |
-3.87 |
-4.03 |
| Iron Ore | 762.5 |
-3.36 |
-3.41 |
| Coke | 1,594 |
-2.21 |
-2.16 |
| Coking Coal | 977 |
-2.06 |
-2.46 |