BEIJING: Iron ore futures slipped for a third straight session on Wednesday, as concerns over demand prospects in top consumer China dominated in the absence of details for anticipated stimulus measures in the world’s second-largest economy.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 1.48% lower at 765 yuan ($105) a metric ton as of 0319 GMT.
The contract hit the lowest since January 13 at 761.5 yuan a ton earlier in the session.
The benchmark April iron ore on the Singapore Exchange was 1.58% lower at $100.55 a ton as of 0309 GMT, after touching the lowest since March 12 at $100.15 a ton earlier.
“The steeper fall in the new construction data dampened market confidence, sparking broad risk-off sentiment,” said Chu Xinli, an analyst at China Futures.
New construction starts measured by floor area decreased 29.6% in January and February, following a 23% slide in 2024, official data showed on Monday.
Moreover, lingering concern over demand prospects amid the escalation of a global trade war triggered by the new tariffs by US President Donald Trump is also weighing on prices.
India has recommended a temporary tax of 12% on some steel products for 200 days, known locally as safeguard duty, in a bid to curb imports. Elsewhere, Taiwan will maintain anti-dumping duties on stainless steel from China and South Korea for five years.
Other steelmaking ingredients on the DCE languished, with coking coal and coke down 2.65% and 1.81%, respectively. Steel benchmarks on the Shanghai Futures Exchange eased.
Rebar lost 0.84%, hot-rolled coil dipped 0.42%, wire rod slid 0.7% and stainless steel ticked down 0.15%.
“A turnaround in the steel market will need to see either a forceful production cut among steelmakers or a stronger-than-expected consumption,” China Futures’ Chu said.
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