Iron ore prices decline as China's industrial activity slows

Iron ore futures prices fell amid market concerns about the repercussions of trade tensions between the United States and China, after data showed a sharp decline in Chinese manufacturing activity to its lowest level in more than two years. The most widely traded iron ore contract for September delivery ended Tuesday's session on the Dalian Exchange, down 0.9% to 697 yuan per ton ($96.84), after hitting 690.5 yuan during the session, its lowest level since April 10. On the Singapore Exchange, iron ore futures for July delivery fell 1.35% to $93.95 per ton by 9:26 a.m. Mecca time. This price decline came after data from S&P Global showed that China's Caixin Manufacturing Purchasing Managers' Index (PMI) fell to 48.3 in May, compared to 50.4 in April, confounding expectations of a rise to 50.7. This is the lowest decline since September 2022, reflecting weak domestic demand and a slowdown in industrial production. Pressures on metal markets increased after former US President Donald Trump announced last week that he would double tariffs on steel and aluminum imports from 25% to 50%, heightening global trade tensions and raising concerns among metal producers worldwide.