SINGAPORE- Iron ore futures prices dropped more than 1 percent 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 percent lower at 803 yuan ($110.48) a metric ton.
The benchmark March iron ore on the Singapore Exchange was trading 1.4 percent 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 US President Donald Trump’s decision earlier this month to impose 25 percent 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 percent 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 percent lower and hot-rolled coil dipped nearly 0.1 percent, while wire rod traded flat and stainless steel gained 0.57 percent.
Other steelmaking ingredients on the DCE posted modest losses, with coking coal and coke down 0.41 percent and 0.36 percent, respectively.
