Market Outlook: Iron Ore Continues to Decline Amidst Weak Steel Demand and High Port Arrivals

The iron ore contracts declined for the fourth session due to weakening steel demand and an increase in port arrival volumes in China. The May iron ore contract on the Dalian Commodity Exchange (DCE) completed the morning trading at 747.5 yuan/ton ($101.96), down 0.73%. The benchmark February iron ore on the Singapore Exchange fell 0.07% to $96.55/ton. Analysts noted that shipments of iron ore to China have increased, and port arrival volumes are high. Meanwhile, derivative steel demand weakened, steel companies accelerated maintenance of blast furnaces, and molten iron production decreased further. According to analysts, steel producers have limited inventory replenishment, port customs clearance volumes have decreased, and fundamentals continue to weaken. In response to the claim that the elected President of the United States had discussed with Chinese President Xi Jinping through aides, the State Department stated that China places great importance on Donald Trump's statements. Trump had previously threatened over 60% tariffs on Chinese goods and an additional 10% tariff. On the Shanghai Futures Exchange, rebar decreased by 1.11%, hot-rolled coil by 0.92%, and wire rod by 1.09%, while stainless steel gained 0.6%. On the DCE, coking coal and coke fell by 3.5% and 1.79%, respectively.