SINGAPORE: Iron ore futures prices fell on Monday, weighed down by renewed rumours of China cutting crude steel output and conflicting statements from US and Chinese officials about trade talks.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.7% lower at 709 yuan ($97.20) a metric ton, as of 0258 GMT.
The benchmark May iron ore on the Singapore Exchange was 0.07% lower at $98.35 a ton.
Market talks resumed that China is planning to cut crude steel output by 50 million tons this year, pressuring prices of steelmaking materials while driving up steel prices.
China’s biggest listed steelmaker, Baoshan Iron & Steel , said chances of a crude steel output cut this year are high, though unlikely in April and May.
The state planner and the state-backed China Iron and Steel Association did not immediately respond to Reuters requests for comment.
China’s steel supply and demand will return to balance if the crude steel output this year is 50 million tons below last year, said Wu Wenzhang, chairman of consultancy Steelhome, as reported by the state-backed China Metallurgy News.
Steel consumption will fall around 30 million tons this year from 2024, while steel exports will drop between 15 million and 25 million tons this year, Wu added.
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Meanwhile, conflicting signals from US President Donald Trump and China over negotiations to de-escalate trade tensions have rattled markets.
On Sunday, US Treasury Secretary Scott Bessent did not back Trump’s assertion that negotiations with China were underway.
Beijing had earlier denied that any talks were taking place.
Other steelmaking ingredients on the DCE languished, with coking coal and coke down 1.25% and 1.27%, respectively. Steel benchmarks on the Shanghai Futures Exchange traded sideways.
Rebar added 0.42% and hot-rolled coil gained 0.81%, while wire rod eased 0.54% and stainless steel fell around 0.1%.
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