Iron ore futures rebounded on Wednesday, as investors shifted focus back to worries over potential supply disruptions from major producer Australia and prospects of growing demand in top consumer China.
Prices slid by more than 1% on Tuesday, hit by U.S. President Donald Trump’s fresh tariffs, which will take effect from March 12.
U.S. President Donald Trump substantially raised tariffs on steel and aluminum imports on Monday to a flat 25% “without exceptions or exemptions” in a move to aid the struggling industries in the U.S., while risking a multi-front trade war.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) gained 0.43% to 824.5 yuan ($112.83) a metric ton as of 0247 GMT.
The benchmark March iron ore (SZZFH5) on the Singapore Exchange rose 1.76% to $107.75 a ton as of 0308 GMT, the highest since October 16, 2024.
Concerns over supply disruptions revived after Western Australia’s Port Hedland, the world’s biggest export point for iron ore, will be closed at 6 p.m. (1000 GMT) due to tropical cyclone Zelia, boosting investor sentiment and lifting prices.
Prices were also supported by expectations of a rising demand, with weather becoming increasingly favourable for outdoor construction activities, analysts said.
Hot metal output, typically used to gauge iron ore demand, is expected to pick up steadily as steel mills resumed operations after China’s week-long Lunar New Year holidays, boosted by the relatively decent profitability, CITIC Futures said.
But other steelmaking ingredients on the DCE dipped further, with coking coal and coke (DCJcv1) down 0.62% and 0.4%, respectively.
Steel benchmarks on the Shanghai Futures Exchange extended losses. Rebar dropped 0.42%, hot-rolled coil eased 0.09%, wire rod (SWRcv1) slipped 0.28% and stainless steel lost 0.68%.
Source: Reuters
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