Iron ore futures edged higher on Wednesday, supported by firmer coking coal and coke prices, although tight steel mill margins and weak underlying demand continued to limit the upside.
Coking coal and coke markets strengthened as mine production remained constrained by high safety supervision. Rising coal costs have deepened losses at coke producers, prompting further production cuts and increasing expectations of a first-round coke price hike. Stronger expectations for steel production resumptions at some blast furnaces have also provided support to coke demand.
Iron ore prices have also received some cost-driven support from higher freight and energy costs due to tensions in the Middle East. However, the broader steel market remained constrained by sluggish downstream demand.
On the Dalian Commodity Exchange, the most-traded iron ore contract rose 0.78pct to 712 yuan (USD 105.6) per ton. Coke futures increased 2.62pct to 2,058 yuan (USD 305) per ton, while coking coal futures gained 3.46pct to 1,586.5 yuan (USD 235) per ton.
On the Shanghai Futures Exchange, HRC futures rose 0.40pct to 3,286 yuan (USD 488) per ton, while rebar futures increased 0.27pct to 3,017 yuan (USD 448) per ton. Wire rod futures declined 0.24pct to 3,261 yuan (USD 484) per ton, while stainless steel futures fell 0.07pct to 14,260 yuan (USD 2,117) per ton.
1 USD / 6.73 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,261.00 | ▼ -0.24 | ▼ -0.49 |
| Hot Rolled Coils | 3,286.00 | ▲ 0.40 | ▲ 0.15 |
| Rebar | 3,017.00 | ▲ 0.27 | ▼ -0.20 |
| Stainless Steel | 14,260.00 | ▼ -0.07 | ▼ -0.49 |
| Iron ore | 712.00 | ▲ 0.78 | ▼ -0.28 |
| Coke | 2,058.00 | ▲ 2.62 | ▲ 5.25 |
| Coking Coal | 1,586.50 | ▲ 3.46 | ▲ 2.52 |