Iron ore futures dipped on Thursday as rising global tariffs on Chinese steel weighed on market sentiment. Despite strong demand in China, trade uncertainty kept prices under pressure.
Tariffs shake up steel and iron ore markets
With new tariffs hitting Chinese steel exports, investors are concerned about the broader impact on demand for iron ore. The U.S. imposed a 25% tariff on steel, while Vietnam and South Korea have also announced new levies, adding to trade tensions. The EU is considering similar measures, leaving the outlook for Chinese steel exports uncertain.
China’s demand provides some support
Despite trade concerns, China’s steel sector remains active. Daily crude steel output hit a seven-month high, and iron ore inventories declined by 3.8%, signaling solid consumption. Steel futures in Shanghai also saw gains, with rebar, hot-rolled coil, and stainless steel all rising.
Market reaction
- Dalian iron ore futures fell 0.8% to 805 yuan ($110.77) per ton.
- Singapore benchmark iron ore dropped 0.93% to $104.90 per ton.
- Steelmaking inputs like coking coal and coke gained nearly 1%.
While strong domestic demand is helping iron ore hold its ground, uncertainty over tariffs could keep pressure on prices in the near term.
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