Iron Ore Prices Drop

Trade tensions and weak growth impact iron ore prices

Iron ore futures fell on Wednesday due to rising trade tensions between the US and China and slowing Chinese growth, which dampened market sentiment. The most-traded May iron ore contract on China's Dalian Commodity Exchange (DCE) declined 0.62 percent to 804 CNY (110.37 USD) per ton. Similarly, the benchmark March iron ore contract on the Singapore Exchange decreased by 0.85 percent, settling at 104.15 USD per ton.

In terms of supply disruptions, Rio Tinto reported clearing iron ore ships from two Western Australian ports due to tropical cyclones affecting its infrastructure repairs. Meanwhile, China's response to the new US tariffs, including a 15 percent levy on US coal, is expected to put pressure on Chinese iron ore markets. Slower growth in Chinese factory and services activity further complicated market outlooks.

The ongoing trade dispute and supply chain concerns are contributing to uncertainty in the iron ore market, as Chinese demand remains a key factor for global prices.

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