Easing of China-US trade tensions pushes up seaborne iron ore prices
Published by:Norman Fong<>
13 May 2025 @ 11:59 UTC

Iron ore prices surged on Tuesday May 13 in line with buoyant trading sentiment in the steelmaking industry following the announcement of lower reciprocal tariffs between China and the US. There was also an uptick in seaborne trading in anticipation of a resumption of manufacturing activity after a month of sluggish growth, sources told Fastmarkets.
Key drivers The most-traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) moved down by 0.6% on Tuesday from the previous closing price of 718.50 yuan ($100) per tonne.
And by 6:30pm Singapore time, the most-traded May contract on the Singapore Exchange (SGX) moved downwards by $0.60 per tonne compared to the previous settlement price of $100 per tonne.
The move by Washington and Beijing to ease tariffs on select industrial goods, including steel-related products, has sparked renewed optimism over the resumption of trade flows between the world’s two largest trading blocs, according to a trader in Beijing.
The trader told Fastmarkets that the removal of tariffs will be instrumental in setting utilization rates across various sectors such as automative, construction and consumer goods, which will now be on the path to recover after only sluggish growth in April.
While the direct impact on Chinese exports remains to be seen, the policy shift is a confidence booster that may help to stabilize prices after recent declines linked to sluggish property activity in China and slower manufacturing orders in the US, according to a trader in Singapore.
A Shanghai-based analyst, meanwhile, said that hot-rolled coil and reinforcing bar forward month contract prices had moved up on May 12 in response to the easing of trade tensions and there has been renewed restocking interest from domestic warehouses in anticipation of stronger end-user demand.
The Singapore trader added that steelmakers are now incentivized to keep up with the anticipated increase in demand, in contrast to the sharp dip in orders that followed the imposition of additional tariffs in early April.
A 170,000-tonne cargo of 61% Pilbara Blend fines (PBF) with a laycan of July 2-11 traded via a tender at $96.41 per tonne, according to various sources.
And source based in Singapore said the cargo had traded at a discount of about $0.30 on a July basis.
Valuations on the new specifications of PBF are expected to vary among different market participants, especially in the initial months, due to the lack of reference points, a second trader from Singapore said. Some may base it on a price spread with other brands, [while others] may take a more rigorous approach in using value-in-use to derive an accurate price.
Import demand for lump cargoes has also been on the rise, according to a trader in Shanghai, who said that end-user demand for low-cost direct-charge material had started to pick up following the news of the easing of import tariffs, because most steelmakers were gearing up to expand production to keep up with an anticipated rise in demand for finished steel.
A second trader in Beijing said that lump inventories in the Chinese market were at a slightly lower level in the second half of April, but with the recent uptick in demand, lump premiums are expected to inch higher in the coming weeks.
Fastmarkets’ iron ore 62.5% Fe Australia-origin lump ore premium cfr Qingdao index averaged at $0.1530 per dry metric tonne unit (dmtu) in the trading week ending May 9, up by $0.0030 per dmtu, or 2%, compared with the previous trading week.
Pellet feed, concentrates Discounts for 65% Fe iron ore concentrates widened by $0.20 per tonne on May 13, compared with the previous pricing session.
Valuations for high-grade sintering concentrates have continued to fall in line with weaker steelmaking margins and a pivot by Chinese steelmakers toward lower-cost sinter fines, according to a trader in Hebei province in northern China.
The impact of lowered tariffs on the high-grade iron ore market may not directly translate into stronger demand, a third Singapore trader told Fastmarkets, because mills may continue to remain conservative in their procurement patterns due to the risk of another downturn in steel demand.
Fastmarkets’ iron ore indices 62% Fe fines, cfr Qingdao:$100.37 per tonne, up $2.20 per tonne 62% Fe low-alumina fines, cfr Qingdao:$99.51 per tonne, up $2.20 per tonne 58% Fe fines high-grade premium, cfr Qingdao:$87.89 per tonne, up $2.23 per tonne 65% Fe Brazil-origin fines, cfr Qingdao:$111.92 per tonne, up $2.20 per tonne 62.5% Fe Australia-origin lump ore premium, cfr Qingdao:$0.1550 per dry metric tonne unit (dmtu), unchanged 62% Fe fines, fot Qingdao:786 yuan per wet metric tonne (implied 62% Fe China Port Price:$100.41 per dry tonne), up by 12 yuan per wmt 67.5% Fe pellet feed premium, cfr Qingdao:$0.80 per tonne, unchanged 67.5% Fe pellet feed, cfr Qingdao:$116.06 per tonne, up $1.99 per tonne 65% Fe concentrate premium, cfr Qingdao:$(5.40) per tonne, down $0.20 per tonne 65% Fe concentrate, cfr Qingdao:$105.08 per tonne, up $1.84 per tonne
Trades/offers/bids heard in the market BHP, Global ore, 80,000 tonnes of 62% Fe Mining Area C fines, traded at $97.50 per tonne CFR Qingdao, laycan June 16-25
Rio Tinto, tender, 170,000 tonnes of 60.8% Fe Pilbara Blend fines, traded at $96.41 per tonne CFR Qingdao (61% Fe base), laycan July 2-11
BHP, tender, 203,068 tonnes of 60.3% Fe Jingbao fines, traded at June average of two 62% Fe iron ore fines index with a discount of $2.49 per tonne, bill of lading dated May 11
Tender, 80,000 tonnes of Sesa 54% Fe Fines, laycan May 20-30
Market participant indications Fastmarkets’ index for iron ore 62% Fe fines CFR Qingdao Pilbara Blend fines: $99.82-100.70 per tonne Brazilian Blend fines: $98.72-100.20 per tonne Newman fines: $96.82-98.00 per tonne Jimblebar fines: $92.99-93.42 per tonne
Fastmarkets’ index for iron ore 67.5% Fe Pellet Feed Premium, CFR Qingdao Minas Rio BFPF Pellet Feed: $(3.00)-(5.00) per tonne Atacama CNN Pellet Feed: $(2.00)-(3.00) per tonne Shougang Hierro Peru 70: $0.25-0.60 per tonne Kaunis Pellet Feed: $0.00-1.00 per tonne Metinvest 68% Pellet Feed: $(3.00)-(4.00) per tonne
Fastmarkets’ index for iron ore 65% Fe Concentrate Premium, CFR Qingdao Citic Pacific Concentrate: $(4.50) per tonne Karara Concentrate: $(6.89) per tonne Metinvest SevGok Concentrate: $(4.20)-(5.50) per tonne
Port prices Pilbara Blend fines were traded at 765-780 yuan per wmt in Shandong province and in the ports of Tangshan city on Tuesday.
The latest range is equivalent to about $98-100 per tonne in the seaborne market.
Dalian Commodity Exchange The most-traded September iron ore futures contract on the Dalian Commodity Exchange closed at 714.50 yuan ($99) per tonne on Tuesday, down by 4 yuan per tonne from the previous closing price.