By Michele Pek
SINGAPORE (Reuters) – Iron ore futures prices dropped more than 1% on Thursday, pressured by escalating tariff measures against Chinese steel and an increase in iron ore imports into top consumer China.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.05% lower at 803 yuan ($110.48) a metric ton.
The benchmark March iron ore on the Singapore Exchange was trading 1.4% lower at $104.4 a ton.
Australian shipments have increased significantly, and Brazil shipments have also rebounded, while the output of molten iron has decreased month-on-month, broker Hexun Futures said in a note.
Also impacting sentiment for the key steel-making ingredient was a lacklustre outlook for Chinese steel exports, as more countries impose tariffs on Chinese steel products.
After U.S. President Donald Trump’s decision earlier this month to impose 25% tariffs on all steel products, Vietnam announced a temporary anti-dumping levy on Chinese steel, with South Korea provisionally deciding to impose up to 38% tariffs on Chinese steel plate imports.
The EU is also considering steel import curbs following Trump’s tariff threats.
Still, daily crude steel output in mid-February among member mills of the China Iron and Steel Association (CISA) hit a seven-month high of 2.15 million tons, said Mysteel in a separate note, citing statistics from CISA.
Steel benchmarks on the Shanghai Futures Exchange traded sideways. Rebar edged 0.03% lower and hot-rolled coil dipped nearly 0.1%, while wire rod traded flat and stainless steel gained 0.57%.
Other steelmaking ingredients on the DCE posted modest losses, with coking coal and coke down 0.41% and 0.36%, respectively.
($1 = 7.2682 Chinese yuan)
(Reporting by Michele Pek; Editing by Sherry Jacob-Phillips)
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