BEIJING- Iron ore futures fell for a fourth straight session on Thursday, dragged down by persistent worries over demand for the key steelmaking ingredient from top consumer China as the global trade war escalates.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) dropped 1.18 percent to 756.5 yuan ($104.60) a metric ton the lowest since January 10.
The benchmark April iron ore on the Singapore Exchange eased 0.45 percent to $99.8 a ton, the lowest since March 12.
The European Union will tighten steel import quotas to reduce inflows by a further 15 percent from April, a senior EU official said on Wednesday, in a move aimed at preventing cheap steel flooding the European market after the US imposed new tariffs.
This is the latest in a series of moves adopted by countries and regions to protect their local market, which could dampen China’s steel exports this year, pressuring steel prices and denting the appetite for feedstocks.
The weakness in iron ore prices persisted despite Mineral Resources announcing on Wednesday that it had temporarily paused haulage from its Onslow Iron project in Western Australia, following a road train accident on Monday.
Other steelmaking ingredients on the DCE eased further, with coking coal and coke slipping 0.73 percent and 1.33 percent, respectively. Most steel benchmarks on the Shanghai Futures Exchange slid due to bearish demand outlook.
Rebar dipped 0.88 percent, hot-rolled coil lost 0.51 percent, stainless steel shed 0.31 percent, while wire rod added 0.41 percent.
“Steel demand in the property sector and in exports in 2025 are expected to decrease 10 percent and 4 percent-5 percent, respectively,” Citi said, quoting a steel trader.
