Iron ore futures recovered on Friday, helped by improved economic data, though concerns about weak demand persist.
China’s consumer price index (CPI) rose by 0.5pct YoY in July, according to the National Bureau of Statistics. However, the producer price index (PPI) fell by 0.8pct YoY in July due to fluctuations in international commodity prices and weak domestic demand for some industrial products.
The outlook for iron ore demand remains bearish due to sluggish steel demand, decreasing steel output, high port-side inventories, and weak steel mills’ margins.
On the Dalian Commodity Exchange, January 2025 iron ore futures increased by 0.27pct to 741.5 yuan (USD 103.4) per ton. Meanwhile, coke and coal prices fell by 1.03pct and 0.32pct, respectively, to 1,966 yuan (USD 274) per ton and 1,391.5 yuan (USD 194) per ton.
On the Shanghai Futures Exchange, rebar futures dropped by 0.72pct to 3,277 yuan (USD 457) per ton, HRC futures fell by 0.72pct to 3,430 yuan (USD 478) per ton, and wire rod futures decreased by 1.39pct to 3,274 yuan (USD 457) per ton. Stainless steel futures also declined by 0.36pct to 13,845 yuan (USD 1,931) per ton.
1 USD / 7.17 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,274 |
-1.39 |
-0.64 |
| HRC | 3,430 |
-0.72 |
0.44 |
| Rebar | 3,277 |
-0.27 |
0.70 |
| Stainless Steel | 13,845 |
-0.36 |
0.33 |
| Iron Ore | 741.5 |
0.27 |
1.62 |
| Coke | 1,966 |
-1.03 |
0 |
| Coking Coal | 1,391.5 |
-0.32 |
0.97 |
