Iron ore resumes drop on challenging outlook after trade boost

Iron ore fell as a broad, risk-on lift that followed the US-China trade truce faded, with traders turning their attention back to a challenging industry backdrop.

Futures dropped toward $99 a ton in Singapore, after surging by more than 3 per cent on Monday to the highest close in almost three weeks. That advance came after the world’s two biggest economies announced a massive de-escalation in tariffs.

Looking ahead, China’s steel market — the world’s largest — is poised to enter a seasonal off-peak period, a shift that’s set to put downward pressure on mills’ demand for raw materials including iron ore.

Iron ore is little changed in May after a run of three monthly losses that came as the global trade war escalated and Chinese authorities were set to order mills to reduce steel output. Last week, the China Iron and Steel Association said that the government was “actively deploying and promoting” the steel-production mandate.

“As we enter May, downstream demand will be impacted to some extent by the off-season,” Shanghai Metals Market said in a note. In addition, the focus will be on the policy to reduce steel production, and the accumulation of major steel inventories, it added.

Iron ore traded 0.5 per cent lower at $99.55 a ton at 10:55 a.m. in Singapore, while yuan-priced futures in Dalian were flat. In Shanghai, steel rebar contracts — which hit the lowest close since 2017 last week — were little changed after gaining on Monday. 

Separately, copper was little changed at $9,511.50 a ton on the London Metal Exchange, while nickel and tin fell. 

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Published on May 13, 2025