BEIJING — Iron ore futures extended their decline for a second straight session on Friday and posted a weekly loss, as US President Donald Trump’s plan to impose a 50 percent tariff on an additional range of “steel derivative products” weighed.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) closed daytime trade 0.14 percent lower at 703 yuan ($97.90) a metric ton, posting a weekly drop of 0.7 percent.
The benchmark July iron ore on the Singapore Exchange lost 0.15 percent to $94.4 a ton, a decline of 1.2 percent so far this week.
The contract, which has been below the key psychological level of $100 for nearly a month, hit its lowest level since April 10 at $93.65 earlier in the session.
A range of imported household appliances, including dishwashers, washing machines, refrigerators and more will be subject to Trump’s 50 percent steel tariffs from June 23.
It’s largely a sentiment-driven reaction and isn’t likely to have a significant impact on China’s steel market in the near term, as any effects will take time to filter through, said two Chinese analysts on condition of anonymity as they are not authorized to speak to media.
Demand for iron ore, the key steelmaking ingredient, remained firm, helping to limit losses.
Average daily hot metal output, a gauge of iron ore demand, hovered at around 2.42 million tons for a third consecutive week in the week as of June 12, data from consultancy Mysteel showed.
China’s steel exports this year will likely climb by 1.2 percent from the year before to 112 million tons while apparent steel consumption will fall 1 percent year-on-year, analysts at investment bank China International Capital Corporation noted.
