Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
The U.S. decision to double Section 232 tariffs on steel imports to 50% is raising concerns about global trade and supply chain disruptions, though its immediate impact on iron ore markets appears limited. According to UBS, U.S. steel imports have dipped just 3% year-to-date through April, with domestic producers running at around 78% utilization. The increased tariffs could push hot-rolled coil prices near $1,000 per short ton, up from about $840, possibly encouraging more domestic production.
However, analysts caution that rising trade tensions could hurt global growth and reduce demand for iron ore. Despite these macro risks, the iron ore market has remained resilient, supported by tight supply fundamentals. Spot prices are hovering around $96 per tonne, with UBS noting the price has held near $100/t, aided by low Chinese port inventories and strong steel exports.
China remains a key factor. Its finished steel exports have already surpassed 100 million tonnes in 2025, helping counterbalance slower domestic production and keeping iron ore demand steady. UBS also highlights a recovery in supply, with Brazilian exports hitting 9.6 million tonnes in late May—the highest weekly total this year. Australian shipments have also rebounded, helping stabilize global supply.
Investment sentiment remains cautious. UBS maintains Neutral ratings on major iron ore miners like Vale (NYSE:VALE), Rio Tinto (NYSE:RIO), BHP (ASX:BHP), and Fortescue Metals (ASX:FMG), citing modest free cash flow yields of 3–4% based on current prices. Rising short positions on Dalian iron ore contracts suggest growing speculative activity.
Ultimately, the outlook for iron ore will hinge on China’s continued steel demand and export strength, as well as how global trade tensions evolve in the coming months.
