Iron ore futures declined on Friday, weighed down by ongoing concerns about demand and market sentiment
High port inventories, reduced steel production, and environmental-related curbs on steel production in some regions continue to create a bearish outlook for iron ore.
Adding to the pressure, a weak demand forecast for steel further dampened iron ore prospects. According to the China Metallurgical Industry Planning and Research Institute, China’s steel demand is expected to decline by 1.5pct to 850 mln metric tons in 2025. This projection highlights persistent challenges, including trade conflicts, carbon levies, shifting downstream market demands, and higher operational costs associated with low-carbon development.
At a macroeconomic level, the lack of additional stimulus from Beijing compounded bearish market sentiment. The Chinese central bank left loan prime rates unchanged, while the U.S. Federal Reserve signaled a slower pace of interest rate cuts in 2025.
On the Dalian Commodity Exchange, iron ore futures slipped 0.77pct to 769 yuan (USD 106.8) per ton. Coke futures edged down 0.22pct to 1,820 yuan (USD 241), while coking coal futures settled at 1,147.5 yuan (USD 157) per ton.
In the Shanghai Futures Exchange, rebar futures fell 1.5pct to 3,287 yuan (USD 451) per ton, and HRC futures dropped 1.55pct to 3,419 yuan (USD 469) per ton. Wire rod prices recorded a slight increase of 0.14pct to 3,576 yuan (USD 491) per ton, while stainless steel futures declined 0.92pct to 12,865 yuan (USD 1,766) 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 | 3,549 |
-3.19 |
-0.76 |
| HRC | 3,410 |
-0.47 |
-0.26 |
| Rebar | 3,279 |
-0.27 |
-0.24 |
| Stainless Steel | 12,895 |
0.08 |
0.23 |
| Iron Ore | 769 |
-0.77 |
-1.24 |
| Coke | 1,820 |
-0.22 |
3.60 |
| Coking Coal | 1,160 |
0.61 |
1.12 |
