By Michele Pek
SINGAPORE (Reuters) -Iron ore futures prices closed lower on Thursday, pressured by escalating tariff measures against Chinese steel, though solid demand for the steel-making ingredient in top consumer China cushioned the downward trend.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.8% lower at 805 yuan ($110.77) a metric ton.
The benchmark March iron ore on the Singapore Exchange was trading 0.93% lower at $104.9 a ton.
The outlook for Chinese steel exports is uncertain, as more countries impose tariffs on Chinese steel products.
After U.S. President Donald Trump’s decision earlier this month to impose 25% tariffs on all steel products, Vietnam announced a temporary anti-dumping levy on Chinese steel, with South Korea provisionally deciding to impose up to 38% tariffs on Chinese steel plate imports.
The EU is also considering steel import curbs following Trump’s tariff threats.
Still, daily crude steel output in mid-February among member mills of the China Iron and Steel Association (CISA) hit a seven-month high of 2.15 million tons, said Chinese consultancy Mysteel, citing statistics from CISA.
Additionally, inventories of imported iron ore sintering fines declined 3.8% wekk-on-week, indicating larger consumption of the steel feedstock, Mysteel said in a separate note.
Steel benchmarks on the Shanghai Futures Exchange rose. Rebar climbed nearly 0.5%, hot-rolled coil was up 0.35%, wire rod edged 0.54% higher and stainless steel gained 0.69%.
Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 0.87% and 0.75%, respectively.
($1 = 7.2675 Chinese yuan)
(Reporting by Michele Pek; Editing by Sherry Jacob-Phillips)
