Iron ore futures experienced a slight decline on Friday due to escalating trade war concerns. However, the market still recorded a weekly gain, fueled by strong demand for this crucial steelmaking raw material in China, the world’s leading consumer. The Dalian Commodity Exchange reported that the May iron ore contract finished down 0.19% at 785.5 yuan ($108.13) per metric ton, marking a 3.09% increase over the week. Meanwhile, the April iron ore benchmark on the Singapore Exchange also faced a minor setback, dropping 0.14% to $103.35 per ton by 0722 GMT.
Nevertheless, it still saw a weekly gain of 3.44%. Recent data indicated that hot metal production rose by 10,200 tons to reach 2.3728 million tons month-on-month in March. Additionally, the daily consumption of imported ore increased by 13,200 tons, suggesting a robust demand for iron ore. Broker Galaxy Futures noted a seasonal uptick in downstream demand and predicted continued short-term replenishment needs for iron ore.
In a bid to support the economy amidst external pressures, Chinese Vice Premier Ding Xuexiang highlighted the government’s commitment to bolster policy measures. This comes against the backdrop of U.S. President Donald Trump’s announcement of a 25% tariff on imported cars and lightweight trucks, which led to significant market losses for Asian automakers. Other steelmaking components also faced challenges, with coking coal and coke prices declining by 1.06% and 0.8%, respectively. The Shanghai Futures Exchange saw most steel benchmarks decline, although stainless steel showed a modest gain of 0.93%.
Singapore’s financial markets will be closed for a public holiday on March 31, resuming trading on April 1.