BEIJING: Iron ore futures extended decline for a second consecutive session on Friday, set for a weekly loss, as US President Donald Trump’s plan to impose a 50% tariff to an additional range of “steel derivative products” weighed on sentiment.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) was down 0.5% at 700.5 yuan ($97.63) a metric ton, as of 0212 GMT. The contract has lost 1.1% so far this week.
The benchmark July iron ore on the Singapore Exchange lost 0.68% to $93.9 a ton, as of 0205 GMT, a decline of 1.7% 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% steel tariffs from June 23.
Iron ore slides on heightened Sino-US trade tension, China stimulus uncertainty
It’s largely a sentiment-driven reaction for now 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 the steel industry, said two Chinese analysts on condition of anonymity as they are not authorised to speak to media.
Demand for the key steelmaking ingredient remained firm, helping to limit losses.
Average daily hot metal output, a gauge of iron ore demand, hovered 2.42 million tons for a third consecutive week, data from consultancy Mysteel showed.
Other steelmaking ingredients on the DCE, however, advanced, with coking coal and coke up 0.9% and 0.3%, respectively.
Steel benchmarks on the Shanghai Futures Exchange weakened. Rebar lost 0.81%, hot-rolled coil slid 0.91%, wire rod shed 0.94% and stainless steel edged down 0.28%.
