"Iron Ore Ticks Up, But Set for Weekly Loss on Tariff Woes"

Ladies and gentlemen, buckle up! We're diving headfirst into the wild world of iron ore, where tariffs are causing a storm, and prices are on a rollercoaster ride. Let's break it down, step by step, and figure out what's really going on.

First things first, iron ore prices have been all over the place. One minute they're up, the next they're down. It's like a game of whack-a-mole, and the market is the mole. The Singapore Exchange iron ore contracts dropped to $110.05 a metric ton on Wednesday, the lowest close since Aug. 31, and down 23.4% from the peak so far in 2024 of $143.60, reached on Jan. 3. That's a massive drop, folks! And the Dalian Commodity Exchange futures contract in China fell to 819.5 yuan ($114.04) a ton on Wednesday, a five-month low and down 19.2% from the peak so far this year of 1,014 yuan on Jan. 4. It's a bloodbath out there!



Now, let's talk about the elephant in the room: tariffs. Vietnam and South Korea have imposed new duties on Chinese steel products, and it's causing a ripple effect in the iron ore market. Vietnam slapped a temporary anti-dumping levy of between 19.38% and 27.83% on hot-rolled coil steel products from China, while South Korea imposed provisional anti-dumping duties of between 27.91% and 38.02% on Chinese thick steel plates. And if that wasn't enough, the U.S. is planning to introduce a bill to thwart cheap steel imports by China-supported companies based in other countries. It's a double whammy, folks, and the market is feeling the heat.

But wait, there's more! The economic slowdown in China, particularly in the property sector, is also weighing heavily on iron ore demand. The property sector accounts for about 40% of demand for iron ore, and new home starts have continued to fall, now down more than 20% year-to-date. This decline in new construction activities has suppressed steel demand in 2025, and China's domestic steel demand is expected to fall 3% this year to about 869 million tonnes. It's a perfect storm, folks, and the market is reeling.

So, what does this all mean for iron ore prices? Well, it's not looking good, folks. The market is volatile, and prices are set for a weekly loss. But don't despair, because there's always an opportunity in chaos. Major iron ore producers like vale, rio tinto, and Fortescue are implementing strategies to mitigate the risks associated with the current market volatility and tariff issues. They're blending high-silica products, maintaining production levels, expanding production capacities, and focusing on cost management. It's a tough game, but these guys are playing to win.

So, what's the bottom line? Iron ore prices are ticking up, but they're set for a weekly loss on tariff woes. The market is volatile, and the economic slowdown in China is weighing heavily on demand. But don't panic, folks, because there's always an opportunity in chaos. Stay tuned, stay informed, and stay ahead of the game. This is a no-brainer, folks, and you need to be in the know.