BEIJING: Iron ore futures slid on Wednesday, as concerns over steel demand in top consumer China ignited by the European Union’s decision to hike tariff on Chinese electric vehicles outweighed prospects of more fiscal stimulus from Beijing.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.7% lower at 777 yuan ($108.88) a metric ton.
The benchmark December iron ore on the Singapore Exchange slipped 1.3% to $102.6 a ton, as of 0351 GMT. The EU has decided to increase tariffs on Chinese-built EVs to as much as 45.3% at the end of its highest-profile trade investigation, raising concerns over exports ahead, which could weigh consumption for steel products domestically. The resumed confidence on prospects of more fiscal stimulus after a Reuters report pushed prices higher overnight and earlier the session. China is considering approving next week the issuance of over 10 trillion yuan in extra debt in the next few years to revive its fragile economy, Reuters reported after daytime trading closed on Tuesday.
Other steelmaking ingredients on the DCE lost ground, with coking coal and coke down 1.72% and 0.58%, respectively. Steel benchmarks on the Shanghai Futures Exchange were largely lower.
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