SINGAPORE: Iron ore futures traded in a narrow range on Thursday, as investors weighed fresh initiatives by top consumer China to support its equity markets against concerns of higher US tariffs on Chinese imports.

The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.13% higher at 799 yuan ($109.76) a metric ton, as of 0313 GMT. The benchmark February iron ore on the Singapore Exchange ticked down 0.06% to $103.5 a ton.

Chinese stocks strengthened in early trading, gaining broad support from Beijing’s latest initiative to prompt insurance funds into purchasing shares listed on the mainland.

Beijing has been intensifying policy support to boost investor confidence, as the country navigates deflationary pressure and geopolitical tension.

Iron ore is under pressure amid concerns that a broader trade war will dent export-driven demand in the steel sector, said ANZ analysts. US President Donald Trump said on Tuesday his administration was considering a 10% tariff on Chinese imports.

Since taking office, Trump has yet to make a final decision on tariffs against China, stoking uncertainty, and steel prices are still mainly range-bound, Chinese consultancy Galaxy Futures said in a note.

On the supply-side, Australia’s Fortescue posted a marginal rise in its second-quarter iron ore shipments. Fortescue, the world’s fourth largest iron ore miner, said its output was affected by a major shutdown in facilities at its Iron Bridge project. The project is expected to produce at full capacity later this year.

Other steelmaking ingredients on the DCE gained, with coking coal and coke up 0.18% and 1.29%, respectively. Most steel benchmarks on the Shanghai Futures Exchange rose. Rebar gained nearly 0.4%, hot-rolled coil ticked up 0.29%, wire rod was up 0.45%, while stainless steel dipped 0.87%.