The price of iron is the lowest level in a month due to Trump's fees

The price of iron has dropped to the lowest level since the beginning of May in collaboration with the decline in stock markets, after President Donald Trump announced his intention to double custom duties on steel and aluminum with the aim of protecting US workers. The future iron crude contracts, an important component in the steel industry, dropped below $ 95 a tonne on Monday, amid the fear of global trading tension. Donald Trump visited the United States Steel Factory on Friday to promote an upcoming agreement between the Japanese USS Steel and Nippon Steel, and announced during the event that the new customs duties will come into effect on the fourth of June. The demand for Chinese steel products, analysts at Anz Group Holdings, wrote in a research note: ‘The trade war is the biggest challenge for the market’, and they added that any decrease in demand for Chinese steel products will harm the demand for iron ore. The future iron ore contracts in Singapore fell 0.8% to $ 94.85 per tonne, which is the lowest level during the trade session since May 2, before collecting a bit to $ 95.15 at 10:35 p.m. Chinese markets for future steel and iron -RU contracts are concluded on a national holiday. “For steel markets, I think the most important effect in the short term will be the high steel prices in the United States and their decline in the rest of the world,” said Vivic Dahar, a commodity analyst at the Commonwealth Bank of Australia. He added that the decrease in steel prices, especially in China, could push the margins of the gains of iron bolongs and negatively affect the crude oil prices. On the London Metal Stock Exchange, the price of aluminum fell by 0.1% to 2441 dollars per ton. While the prices of all other basic minerals spread on the stock exchange have risen.