Iron ore losses widen in Dalian as outlook for China's steel exports worsens

By Michele Pek

SINGAPORE (Reuters) - Iron ore futures prices weakened for a third straight session on Wednesday, weighed down by a negative outlook for Chinese steel exports and rising trade tensions between the United States and China.

The most-traded iron ore May contract on China's Dalian Commodity Exchange (DCE) closed down 0.98% to settle at 812 yuan (US$111.86) a tonne. It had hit 803 yuan earlier in the session, its lowest level since Feb. 18.

March benchmark iron ore on the Singapore Exchange fell 0.22% to US$105.8 a tonne.

US President Donald Trump signed an order last week aimed at tightening restrictions on Chinese investment in strategic areas, which led to a stock market plunge in China on Tuesday.

China's direct steel exports will be hit by additional tariffs imposed by Vietnam and South Korea, putting pressure on prices, Chinese consultancy Hexun Futures said in a note.

Vietnam announced last week that it will impose a temporary anti-dumping duty on some Chinese steel products, while South Korea has provisionally imposed tariffs on imports of Chinese steel plates.

Steel mills have resumed production, increasing demand for raw material replenishment, Hexun added.

In China, daily crude steel output of major steel companies saw a month-on-month increase of 0.8% to 2.151 million tonnes, while average daily steel output grew 4.2% month-on-month to 2.037 million tonnes, Chinese consultancy Lange Steel said, citing statistics from the China Iron and Steel Industry Association.

(Reporting by Michele Pek)