QINGDAO, China – April 10, 2025 — Iron ore prices have dropped sharply, falling below the critical $100 per tonne threshold, as fears of deteriorating trading conditions grip the global steel and mining markets.
According to Kallanish, the price of imported Fe 62% iron ore in China fell by $5/tonne, dropping from $101/t to $96/t CFR Qingdao between April 7 and 8.
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High-grade Fe 65% ore fell from $114/t to $109/t
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Low-grade Fe 58% ore dropped to $83/t, down from $88/t
The price decline triggered a quick reaction from the financial markets. On April 8, iron ore futures for May delivery on the Singapore Exchange also tumbled:
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Fe 62% contracts offered at $95/t
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Fe 65% at $108/t
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Fe 58% at $82/t
Traders say Chinese steel mills are delaying purchases, anticipating further declines, which has resulted in rising ore inventories and downward pressure on spot prices, forcing miners to offer discounts.
The price slide comes amid a wave of new import protection measures, led by the United States and supported by several allies. These actions are expected to limit export opportunities, especially for finished steel products, prompting steelmakers to scale back raw material procurement.
Investor sentiment was also shaken by a fresh report from the Australian Department of Industry, Science and Resources, which reaffirmed its earlier forecast:
The global average price of iron ore is expected to fall to $85/t in 2025, down from $95/t in 2024.
Additional pressure is coming from increased supply. Brazil’s iron ore exports surged by 8% year-on-year and 12% month-on-month in March, reaching 28.4 million tonnes, according to Brazilian customs data. However, the average export price dropped to $71.6/t FOB, compared to $92.5/t FOB in March 2024.
Meanwhile, geopolitical tensions are intensifying. On April 10, China’s Tariff Commission imposed a 34% tariff on all U.S. imports. In response, President Donald Trump vowed to raise tariffs on Chinese goods by another 50%, adding to the already imposed 54% in cumulative duties.
These developments are deepening uncertainty in commodity markets, and analysts warn that further volatility is likely unless demand stabilizes or geopolitical tensions ease.
VietnamSteel by Hoa Sen Group
