As China reduced the tariff on US goods, Trump followed by decreasing the tariff on small packages of goods imported from China from 120% to 54%. The steel market was encouraged, and China’s steel prices rose.
China’s crude steel output increased again in early May, and iron ore prices also rose sharply to US$102.6 yesterday (May 14), which was the new high in the past six weeks. In addition, the iron ore inventories from China’s steel mills have fallen to a new low this year.
Due to production cuts from some steel mills and steel inventories having increased, iron ore prices may fluctuate in the short term.