The benchmark December iron ore on the Singapore Exchange slipped 0.29% to $103.55 a ton, as of 0715 GMT.
The EU has decided to increase tariffs on Chinese-built EVs to as much as 45.3% at the end of its highest-profile trade investigation, raising concerns over exports ahead, which could weigh consumption for steel products domestically.
That countered with the resumed confidence on prospects of more fiscal stimulus after a Reuters report pushed prices higher overnight.
China is considering approving next week the issuance of over 10 trillion yuan in extra debt in the next few years to revive its fragile economy, Reuters reported after daytime trading closed on Tuesday.
Other steelmaking ingredients on the DCE lost ground, with coking coal and coke down 1.01% and 0.27%, respectively.
Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar added 0.23%, wire rod gained 0.89% while hot-rolled coil inched down 0.06%, stainless steel shed 0.22%.
“We expect steel output increase will slow down amid narrowing margins and environmental warnings in some northern regions,” analysts at Galaxy Futures said in a note.
“But steel fundamentals continued to deteriorate as demand slid with weather getting colder, which will pressure prices.”
Faltering steel prices dragged by feeble demand had squeezed margins among steelmakers. Baoshan Iron & Steel, China’s biggest listed steelmaker, reported a nearly 65% plunge in its third-quarter net profit on Tuesday. ($1 = 7.1295 Chinese yuan)
(Reporting by Amy Lv and Colleen Howe; Editing by Rashmi Aich and Savio D’Souza)
