BEIJING: Iron ore futures slumped on Monday, as a series of property data from top consumer China heightened concerns over the uncertain demand outlook, already clouded by the global trade war.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 1.14% lower at 778.5 yuan ($107.55) a metric ton.
The benchmark April iron ore on the Singapore Exchange slipped 2.29% to $101.6 a ton, as of 0711 GMT.
China’s new home prices fell in February, despite a raft of government stimulus measures and promises of more while new construction starts measured by floor area, which is often monitored as an indicator for steel demand, decreased 29.6%, following a 23.0% slide in 2024.
Growing uncertainty over the potential for increased hot metal output, a key indicator of iron ore demand, is also weighing on the prices of the essential steelmaking ingredient.
Production of hot metal will pick up mildly this month, leading to a pile-up in portside inventories in coming weeks, analysts at Jinrui Futures said in a note.
Iron ore futures gain on expectations
Chinese steelmakers have exercised more ‘self-discipline’ in production so far this year even when profits are relatively appealing, said a steelmaker and a trader, both requesting anonymity as they are not authorised to speak to media.
Steelmakers in China, the world’s largest producer and consumer, have faced increasing pressure from escalating trade frictions, particularly following new tariffs imposed by U.S. President Donald Trump.
China’s crude steel output in the first two months of 2025 slid 1.5% from a year earlier, official data showed on Monday.
Other steelmaking ingredients on the DCE eased, with coking coal and coke down 1.85% and 1.22%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange lost ground. Rebar shed 1.23%, hot-rolled coil lost 1.17%, wire rod fell 1.3% while stainless steel added 0.22%.
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