Iron ore futures declined on Friday as the market shifted its focus back to weak fundamentals after a brief recovery in the previous session driven by reports that China’s state-owned iron ore buyer had restricted purchases of certain Fortescue low-grade iron ore products.
High portside iron ore inventories in China and increasing global supply remained the key bearish factors. At the same time, the seasonal slowdown in steel demand continued to pressure Chinese steelmakers’ margins, raising expectations that mills may reduce production in the coming weeks, which would weigh on iron ore consumption.
Although China Mineral Resources Group (CMRG) has reportedly instructed some steel mills to stop taking delivery of selected Fortescue low-grade iron ore cargoes from 15 July, market insiders said the measure is unlikely to significantly tighten supply given the abundant availability of iron ore in the market.
Chinese steel traders said market conditions remained weak, with high finished steel supply continuing to pressure prices amid sluggish domestic and export demand. Rising protectionist measures against Chinese steel exports are also expected to limit overseas shipments this year after record exports in 2025 partly offset weaker domestic consumption.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 1.74pct to 734 yuan (USD 108.1) per ton, down 1.87pct compared with the close of last Friday’s morning session.
Coking coal and coke futures rose 1.34pct and 1.71pct to 1,282 yuan (USD 189) per ton and 1,938 yuan (USD 286) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures declined 0.39pct to 3,062 yuan (USD 451) per ton, while HRC futures fell 0.30pct to 3,279 yuan (USD 483) per ton. Wire rod futures dropped 0.42pct to 3,351 yuan (USD 494) per ton, while stainless steel futures edged down 0.27pct to 14,575 yuan (USD 2,149) per ton.
1 USD / 6.78 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,351.00 | ▼ -0.42 | ▼ -0.48 |
| Hot Rolled Coils | 3,279.00 | ▼ -0.30 | ▼ -0.12 |
| Rebar | 3,062.00 | ▼ -0.39 | ▼ -0.16 |
| Stainless Steel | 14,575.00 | ▼ -0.27 | 0.00 |
| Iron ore | 734.00 | ▼ -1.74 | ▼ -0.82 |
| Coke | 1,938.00 | ▲ 1.71 | ▲ 1.70 |
| Coking Coal | 1,282.00 | ▲ 1.34 | ▲ 1.13 |