A bulldozer and a labor work on a pile of iron ore at a steel factory in Tangshan in China’s Hebei Province November 3, 2015. Picture taken November 3, 2015. REUTERS
SINGAPORE, March 3 (Reuters) – Iron ore futures fell for a sixth straight session on Monday amid rising trade tensions between the U.S. and top consumer China, although upbeat Chinese manufacturing data cushioned the fall.
The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) eased 0.75% to 796 yuan ($109.32) a metric ton as of 0254 GMT.
Earlier in the session, prices hit 788 yuan, the lowest since January 16.
The benchmark March iron ore on the Singapore Exchange shed 0.15% to $103.1 a ton.
U.S. Treasury Secretary Scott Bessent said on Friday that Mexico has proposed matching U.S. tariffs on China after U.S. President Donald Trump vowed another 10% tariffs on Chinese imports last week.
Trump also announced plans to impose 25% tariffs on all steel and aluminium imports from March 4, stirring a new wave of trade frictions against Chinese steel.
The U.S. steel tariffs are also set to disrupt the Chinese transshipment of steel estimated at $7 billion, undercutting a vital source of sales for China’s struggling steel sector, Reuters reported last week.
Still, China’s factory activity grew at a faster pace in February, driven by stronger supply and demand and a rebound in export orders, a private-sector survey showed on Monday.
The positive trend in the survey aligned with the official PMI data released on Saturday, which showed February’s manufacturing activity expanding at the fastest pace in three months.
The reading should reassure officials that stimulus measures launched last year are helping the economy recover amid sluggish demand and a struggling property sector.
Other steelmaking ingredients on the DCE gained ground, with coking coal and coke rising 1.46% and 1.31%, respectively.
Steel benchmarks on the Shanghai Futures Exchange rose. Rebar and stainless steel gained 0.3% each, hot-rolled coil advanced nearly 0.6% and wire rod climbed 0.54%.
($1 = 7.2815 Chinese yuan)
Reporting by Michele Pek; Editing by Sumana Nandy
