Iron ore futures declined on Friday as rising inventories at major Chinese ports weighed on market sentiment, although expectations of improved demand helped limit losses. Port stocks continued to build as tight steelmaking margins kept mill restocking slower than previously expected. Some market sources said mills have been favoring domestic ore over imports, adding to port-side inventories, while rising global supply also pressured prices. Iron ore imports hit record highs in December and for full-year 2025, further underscoring ample supply.
In the near term, prices may find some support from a gradual recovery in steel output and restocking ahead of the Chinese New Year holidays in February. Average daily crude steel output among member mills of the China Iron and Steel Association rose to about 2.0 mln tons during January 1-10, up 21.6pct from late December, though still 3.3pct lower YoY.
Chinese steel traders noted that while the market saw limited price movement during the week, buying interest improved in both domestic and export markets. However, the new export licensing regime continues to constrain shipments, keeping activity muted for now. Seasonal factors and the lack of strong upside drivers are keeping the market rangebound.
On the Dalian Commodity Exchange, the most-traded May iron ore contract fell 0.49pct to 812 yuan (USD 116.4) per ton, down 0.31pct from last Friday’s morning close. Coking coal and coke futures declined 1.47pct and 1.52pct to 1,171 yuan (USD 168) and 1,717 yuan (USD 246) per ton, respectively.
On the Shanghai Futures Exchange, rebar edged up 0.06pct to 3,163 yuan (USD 454) per ton, HRC rose 0.33pct to 3,315 yuan (USD 476), and wire rod gained 0.69pct to 3,452 yuan (USD 495). Stainless steel futures slipped 0.38pct to 14,275 yuan (USD 2,048) per ton.
1 USD / 6.96 yuan
