Iron ore price rises on firmer steel outlook, but trade tensions cap gains
Lower Chinese steel product inventory driven by robust exports also supported iron ore prices above $100/t.
Global markets are reacting to Donald Trump’s return to the US presidency, with investors bracing for potential trade wars, shifts in green energy policies, and increased market volatility. Alex Tuckett, Head of Economics at CRU Group, discussed these impacts with MINING.COM’s Devan Murugan.
Tuckett noted that while the US economy might see a short-term boost from more accommodating fiscal policies, the benefits could be offset by increased tariffs, trade retaliation, and rising inflation and interest rates. The surge in gold prices past $2,700 per ounce reflects investor uncertainty.
He emphasized that new tariffs and a broader trade war with China are major concerns for the metals industry. China’s strategic delay in announcing fiscal stimulus post-election adds to a general unpredictability.
Tuckett also highlighted that the Trump administration is expected to take a less aggressive approach to decarbonization, particularly targeting the Inflation Reduction Act (IRA), which could impact battery metals and the EV supply chain.
Watch the full interview:
