Iron ore slips as EU targets China steel
Iron ore futures dropped below CNY 800 per ton on Friday, hitting a two-week low after reports that the European Commission plans to impose steep tariffs of 25%–50% on Chinese steel imports and related products in the coming weeks.
The move aims to curb inflows and shield domestic producers as global overcapacity continues to squeeze margins, while Western economies are also seeking to preserve strategic manufacturing capacity.
At the same time, top producer China is preparing to restrict new capacity to tackle oversupply and weak prices.
Some support came from restocking ahead of the National Day holiday, while prices of domestically mined iron ore concentrates continued to climb across most regions last week amid tight supply and steady demand.
UCapital Asset Management LLP or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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