Iron Ore Futures Slip as Tangshan Tightens Emissions Controls and Trade Risks Intensify.

Iron-ore futures began the trading week lower, weighed down by renewed concerns about demand after China’s principal steelmaking center, Tangshan, introduced fresh pollution-control measures that will limit short-term production and, by extension, appetite for imported raw material. The announcement reinforces a broader pattern of policy-driven volatility that has characterized the ferrous complex throughout the first half of 2025 so far.
The most-active September contract on the Dalian Commodity Exchange closed 0.68% down at 731 yuan (approximately USD 102) per ton, while the front-month August swap on the Singapore Exchange slipped 0.37% to USD 95.50 at 07:45 GMT.
Municipal instructions in Tangshan required several mills to reduce sintering output for environmental reasons; many plants immediately scheduled maintenance shutdowns for sinter strands, removing an important source of near-term iron-ore demand. Analysts expect enquiries for spot cargoes to remain subdued until the restrictions are eased.
Market sentiment was further tested by the impending 9 July deadline for outstanding United States trade negotiations. President Donald Trump signaled he would formally notify trading partners of higher tariff rates this week, with the increases slated to take effect on 1 August.
Compounding the external challenges, Vietnam, currently the top destination for Chinese finished steel, reinstated anti-dumping duties as high as 27.83% on certain flat products following the expiration of a temporary suspension, limiting a vital outlet for excess Chinese supply.
Despite the policy noise, the fundamental production continues to be strong. Consultancy Mysteel projected the average daily hot-metal production to 2.41 million tons on 3 July, slightly exceeding the equivalent 2024 figure. Nonetheless, associated ferrous markets declined: Dalian coking coal dropped 1.76 percent, coke decreased 0.94%, and Shanghai steel contracts all finished in the red.
Consequently, many traders expect price fluctuations to remain confined until Tangshan removes its emission restrictions and Washington specifies its tariff approach. With port inventories still low and mill profit margins positive, any additional price softness could prompt a restocking cycle that would stabilize the seaborne market.

Reference:
Reuters. (2025, July 8). Iron ore falls on China steel output curbs, trade uncertainty. Hellenic Shipping News Worldwide. https://www.hellenicshippingnews.com/iron-ore-falls-on-china-steel-output-curbs-trade-uncertainty/.