Iron ore prices faced downward pressure [1] following the announcement of fresh U.S. tariffs on steel imports, raising concerns over global trade disruptions. However, resilient demand for steel, particularly in China, helped cap losses, preventing a sharp decline in iron ore futures.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 1.09% higher at 791.5 yuan ($108.87) per metric ton, despite initial concerns over the tariffs. Meanwhile, the benchmark May iron ore contract on the Singapore Exchange saw a slight dip of 0.14% to $102.75 per ton.
Market analysts attribute the relative stability in iron ore prices to strong seasonal demand for steel, particularly in China, where production at blast furnace steelmakers has been rising for five consecutive weeks. The recovery in steel demand from end-users and positive profit margins for mills have contributed to sustained iron ore consumption.
Adding to the optimism, China’s factory activity expanded at its fastest pace in four months, driven by stronger demand and robust export orders. This growth has bolstered sentiment in the steel industry, ensuring continued demand for iron ore despite trade uncertainties.
On the supply side, iron ore shipments from Australia and Brazil increased by 5.3% week-on-week, reaching 26.5 million tons as of March 30. This steady flow of supply has helped stabilize the market, preventing excessive volatility.While the U.S. tariffs have introduced new challenges for global steel trade, the resilience of steel demand—particularly in China—has mitigated the impact on iron ore prices.
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[1] Iron ore dips on US tariffs, but resilient steel demand caps losses https://www.tradingview.com/news/reuters.com,2025:newsml_L3N3QH09N:0-iron-ore-dips-on-us-tariffs-but-resilient-steel-demand-caps-losses/