SINGAPORE: Iron ore futures prices strengthened on Thursday, buoyed by seasonal steel demand in top consumer China, outweighing trade war woes sparked by fresh US tariffs.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 1.28% higher at 789 yuan ($108.67) a metric ton, as of 0254 GMT.
Earlier in the session, prices hit 792 yuan, their highest since March 17.
The benchmark April iron ore on the Singapore Exchange was 0.77% higher at $103.15 a ton.
The traditional construction peak season in March and April has led to a seasonal rebound in overall steel consumption, supporting prices in the short-term, broker Hexun Futures said in a note.
Hot metal production in March increased by 56,700 tons to 2.3626 million tons month-on-month, and daily consumption of imported ore increased by 67,900 tons on-month, Chinese consultancy Everbright Futures said in a note.
Hot metal output is typically used to gauge iron ore demand. Still, tariff uncertainty is weighing on commodity markets, said ANZ analysts.
US President Donald Trump said on Wednesday he would be willing to reduce tariffs on China to get a deal done with Chinese parent ByteDance to sell TikTok.
Iron ore rangebound as traders weigh China output cuts, seasonal steel demand
Even so, Trump on Wednesday unveiled a 25% tariff on imported cars and light trucks starting next week, sending shock waves through a global auto industry that is already reeling from uncertainty caused by Trump’s rapid-fire tariff threats and occasional reversals.
Meanwhile, China’s industrial profits slipped in the first two months of 2025 on persistent deflationary pressures and an escalating trade war with the United States.
Other steelmaking ingredients on the DCE gained, with coking coal and coke up 0.93% and 1.4%, respectively.
Steel benchmarks on the Shanghai Futures Exchange traded sideways.
Hot-rolled coil edged almost 0.2% lower, wire rod eased 0.29%, while stainless steel gained 0.15% and rebar traded flat.
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