Iron ore futures edged higher on Friday, supported by a firm near-term demand outlook, although underlying concerns over supply continued to cap gains.
Continued strength in Chinese steel production and stable domestic steel demand supported iron ore consumption. Market sentiment was also lifted by reports of potential US-Iran talks, which could ease energy costs and support steel demand in the GCC, a key export market for Chinese steel. In recent weeks, Chinese steel traders have suspended offers to GCC buyers due to logistics disruptions linked to regional tensions.
Positive economic data and renewed policy focus by Chinese authorities on curbing aggressive competition and boosting domestic demand also supported sentiment in the steel sector.
However, environmental restrictions in China remain a downside risk. Authorities have issued a Level 2 (Orange Alert) pollution warning in parts of Hebei province, requiring output cuts in heavy industries, including steel, and temporary suspension of outdoor construction activity. The duration of the measures has not been specified.
High port-side iron ore inventories in China and rising global supply continue to weigh on the long-term outlook.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 0.39pct to 778.5 yuan (USD 114.1) per ton, and also up 3.32pct compared with the previous Friday’s morning session. Coking coal and coke futures declined by 0.5pct and 0.57pct to 1,226 yuan (USD 180) and 1,778 yuan (USD 261) per ton, respectively.
On the Shanghai Futures Exchange, rebar increased by 0.42pct to 3,133 yuan (USD 459) per ton, while HRC rose 0.33pct to 3,324 yuan (USD 487) per ton. Wire rod edged lower to 3,270 yuan (USD 479) per ton, while stainless steel futures surged 2.2pct to 15,085 yuan (USD 2,211) per ton.
1 USD / 6.82 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,270.00 | ▼ -0.09 | ▼ -0.49 |
| Hot Rolled Coils | 3,324.00 | ▲ 0.33 | ▼ -0.06 |
| Rebar | 3,133.00 | ▲ 0.42 | 0.00 |
| Stainless Steel | 15,085.00 | ▲ 2.20 | ▲ 1.76 |
| Iron ore | 778.50 | ▲ 0.39 | ▼ -0.51 |
| Coke | 1,778.00 | ▼ -0.50 | ▼ -0.98 |
| Coking Coal | 1,226.00 | ▼ -0.57 | ▼ -1.79 |
