BEIJING- Prices of iron ore futures extended gains for a second straight session on Tuesday, as concerns over weather-related supply disruptions in major supplier Australia outweighed unrest from new tariffs unveiled by US President Donald Trump.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.79 percent higher at 827.5 yuan ($113.24) a metric ton.
The contract touched its highest level since December 10 at 830.5 yuan a ton earlier in the session.
The benchmark March iron ore on the Singapore Exchange was 0.35 percent higher at $107.55 a ton, as of 0211 GMT, the highest since October 10, 2024.
The operator of Australia’s iron ore export hub Port Hedland that is used by major producers BHP Group Fortescue and billionaire Gina Rinehart’s Hancock Prospecting had started clearing vessels from the port after a weather warning from the Bureau of Meteorology.
That came after top supplier Rio Tinto cleared ships from two Western Australian ports last week, which had contributed to a sharp fall in shipments during the period, said traders.
Gains, however, were curbed by the unrest stirred by Trump’s fresh tariff threats.
Trump substantially raised tariffs on steel and aluminum imports on Monday to a flat 25 percent “without exceptions or exemptions” in a move to aid the struggling industries but which increases the risk of a multi-front trade war.
The tariffs will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the US duty free under the carve-outs.
“The tariffs could weaken demand for iron ore, if China’s export markets for steel are impacted,” ANZ analysts said in a note.
Other steelmaking ingredients on the DCE slid, with coking coal and coke down 0.44 percent and 1.06 percent, respectively.
Steel benchmarks on the Shanghai Futures Exchange lost ground. Rebar dipped 0.66 percent, hot-rolled coil lost 0.41 percent, wire rod declined 0.72 percent and stainless steel dropped 0.71 percent.
