Iron ore futures rose on Friday as Beijing’s commitment to stronger economic support in 2025 bolstered market sentiment.
The Chinese Politburo announced plans for looser monetary policy and more proactive fiscal measures to stimulate growth, with a focus on stabilizing the housing and stock markets. Analysts believe these moves could herald significant stimulus, akin to measures introduced during the financial crisis in 2010.
The announcement sets the stage for the upcoming Central Economic Work Conference, where key targets and policies for next year will be finalized. However, uncertainties persist, driven by rising port-side iron ore inventories and the seasonal slowdown in steel demand.
A recent steel-sector survey by the National Development and Reform Commission (NDRC) reflects growing pessimism. This signals weaker steel price expectations, attributed to declining demand and colder weather hampering construction. While recent property-sector stimulus efforts may gradually support demand, the benefits from new construction projects are expected to take time.
On the Dalian Commodity Exchange, iron ore futures climbed 1.57pct to 808.5 yuan (USD 111.1) per ton. In contrast, coke and coking coal futures declined by 0.55pct and 2.05pct, settling at 1,800.5 yuan (USD 248) and 1,149.5 yuan (USD 158) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures dipped 0.21pct to 3,267 yuan (USD 449) per ton, and HRC futures slipped 0.17pct to 3,456 yuan (USD 475) per ton. Wire rod futures edged up 0.23pct to 3,512 yuan (USD 483) per ton, while stainless steel futures rose 0.43pct to 12,925 yuan (USD 1,777) per ton.
1 USD / 7.27 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,512 |
0.23 |
-1.57 |
| HRC | 3,456 |
-0.17 |
0.06 |
| Rebar | 3,267 |
-0.21 |
0.21 |
| Stainless Steel | 12,925 |
0.43 |
0.58 |
| Iron Ore | 808.5 |
1.57 |
1.36 |
| Coke | 1,800.5 |
-0.55 |
-0.61 |
| Coking Coal | 1,149.5 |
-2.05 |
-1.87 |
