Iron ore futures fell on Monday as the latest tariff threat from US President Donald Trump triggered broad risk-off sentiment, although signs of recovering demand in top consumer China limited losses.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) eased 0.24 per cent to 818 yuan ($111.94) a metric ton as of 0247 GMT.
The benchmark March iron ore on the Singapore Exchange was 0.32 per cent lower at $106 a ton as of 0237 GMT.
Trump said on Sunday he will introduce fresh 25 per cent tariffs on all steel and aluminum imports into the US, on top of existing metals duties, in another major escalation of his trade policy overhaul.
However, signs of a pick-up in demand of the key steelmaking ingredient that had supported prices last week curbed losses.
Average daily hot metal output among steelmakers surveyed rose 1.3 per cent from the last assessment prior to China’s Lunar New Year holiday break to 2.28 million tons on February 5, data from consultancy Mysteel showed.
Markets were shut for the Chinese Lunar New Year holiday from January 28 to February 5.
Hot metal output is typically used to gauge iron ore demand.
Other steelmaking ingredients on the DCE slipped, with coking coal and coke dropping 0.74 per cent and 2.25 per cent, respectively.
Steel benchmarks on the Shanghai Futures Exchange were weaker. Rebar lost 1.25%, hot-rolled coil fell 0.98 per cent, wire rod shed 1 per cent and stainless steel dipped 0.75 per cent
