Iron ore futures fell on Wednesday, pressured by a bearish outlook for the key steelmaking input. Market sentiment was further dampened by concerns over rising port-side iron ore inventories and weakening steel demand.
Chinese steel production is also slowing, with several mills reportedly scheduling maintenance amid weak steel prices. Additional environmental restrictions during the winter could exacerbate the decline in production.
Meanwhile, the Australian government extended its conservative forecast for iron ore prices. It now expects prices to drop to USD 60 per ton FOB Australia by the end of September 2025, from the previously projected timeline of March 2025. This is significantly lower than the current price of around USD 100 per ton. Notably, over 80pct of Australia’s iron ore exports are destined for China.
On the Dalian Commodity Exchange, iron ore futures declined by 2.63pct to 778.5 yuan (USD 106.8) per ton. Coke and coking coal futures also fell, losing 2.79pct and 3.26pct, closing at 1,757 yuan (USD 241) and 1,174 yuan (USD 161) per ton, respectively.
Steel futures on the Shanghai Futures Exchange were similarly subdued. Rebar futures slipped 1.55pct to 3,312 yuan (USD 455) per ton, while HRC futures dropped 1.2pct to 3,450 yuan (USD 474) per ton. Wire rod prices edged down 0.28pct to 3,569 yuan (USD 490) per ton, and stainless steel futures declined 0.54pct to 12,910 yuan (USD 1,772) per ton.
1 USD / 7.28 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,569 |
-0.28 |
-0.39 |
| HRC | 3,450 |
-1.20 |
-1.25 |
| Rebar | 3,312 |
-1.55 |
-1.57 |
| Stainless Steel | 12,910 |
-0.54 |
-0.58 |
| Iron Ore | 778.5 |
-2.63 |
-2.31 |
| Coke | 1,757 |
-2.79 |
-1.82 |
| Coking Coal | 1,174 |
-3.26 |
-2.98 |
