On Sunday, February 9th, President Donald Trump threatened to impose a 25% tariff on all U.S. imports of steel and aluminum. The tariffs would broadly apply to all such imports into the U.S., including those from Canada and Mexico. Trump stated that this move would promote domestic production and bring more jobs to the U.S., warning that the tariff rates “could be even higher.” According to a U.S. official, the new rates are set to take effect on March 4th.
When signing the measures on Monday, Trump said, “Essentially, we will impose a 25% tariff on all aluminum and all steel, without exception. This will drive many businesses to open within the U.S.”
Unexpectedly, iron ore futures rose on Monday, February 10th. Earlier declines caused by President Trump’s latest tariff threats were offset by signs of recovering demand from China, the largest consumer, and reduced shipments from major suppliers.
On China’s Dalian Commodity Exchange (DCE), the most-traded May iron ore contract closed the session up 0.79% at 826.5 yuan ($113.16) per metric ton, marking the highest level since December 10, 2024.
As of 07:12 GMT, the benchmark March iron ore on the Singapore Exchange gained 0.76% to $107.15 per ton, after touching its highest level since October 16, 2024, at $107.5 per ton earlier in the session.
Signs of a recovery in demand for the key steelmaking ingredient supported prices. According to data from consultancy Mysteel, average daily hot metal output among surveyed steelmakers rose 1.3% to 2.28 million tons on February 5th, compared to levels assessed before the Lunar New Year holiday in China.
Mysteel data also showed that iron ore shipments from major suppliers Australia and Brazil declined by 32% week-on-week to 18.98 million tons as of February 9th, boosting market sentiment.
Meanwhile, steel benchmarks on the Shanghai Futures Exchange fell. Rebar dropped 0.89%, hot-rolled coil fell 0.49%, wire rod lost 0.53%, and stainless steel slipped 0.48%.
