Iron ore futures remained stable on Friday as investors assessed the potential for easing Sino-U.S. trade tensions while considering the seasonally weak demand from China, the leading consumer. The most actively traded September iron ore contract on China’s Dalian Commodity Exchange closed the day down 0.57%, settling at 696 yuan ($96.06) per metric ton, reflecting a weekly decline of 1.2%.
On the Singapore Exchange, the benchmark June iron ore saw a slight increase of 0.65%, reaching $97.15 per ton, marking a weekly gain of 1.5% thus far. Recently, the United States revealed the details of a new trade pact with Britain while President Donald Trump suggested that the punitive tariffs on China might decrease from the current level of 145%.
This indicates a softening relationship between the two economic powerhouses. However, analysts and traders are approaching the forthcoming Sino-U.S. discussions with caution, scheduled for this weekend.
Though demand for iron ore remains relatively steady in the short term, weakening downstream steel consumption poses risks to any potential price growth. A survey conducted by consultancy Mysteel highlighted that the average daily hot metal output, an indicator of iron ore demand, slightly increased by 0.1% week-on-week to 2.46 million tons as of May 8—marking the highest level since October 2023.
Moreover, China’s iron ore imports jumped 9.8% from March to April, reaching their highest figures since December due to improved profit margins that encouraged mills to secure more seaborne cargoes. In contrast, other steelmaking materials on the Dalian Commodity Exchange experienced losses, with coking coal and coke prices declining by 1.79% and 2.1%, respectively.
Steel benchmarks on the Shanghai Futures Exchange also retreated.