Iron ore futures extended gains on Friday, driven by improved market fundamentals and positive sentiment.
Steel production increased this week following the Chinese New Year holidays, with several blast furnaces ramping up output after completing maintenance, according to market insiders. Downstream steel demand is also expected to strengthen next week as more companies resume operations, further supporting iron ore prices.
However, concerns persist over the long-term outlook for iron ore demand due to high port-side inventories, weakness in the property sector, a key steel consumer, and ongoing trade tensions between the U.S. and China.
The U.S. imposed broad 10pct tariffs earlier this week, prompting China to respond with a 15pct tariff on coal and liquefied natural gas, along with a 10pct tariff on crude oil, agricultural machinery, and large-engine cars imported from the U.S., effective February 10.
On the Dalian Commodity Exchange, iron ore futures rose 0.86pct to 817 yuan (USD 112.1) per ton. Coke and coking coal futures also climbed, gaining 2.97pct and 2.76pct to 1,786.5 yuan (USD 245) and 1,153.5 yuan (USD 158) per ton, respectively.
In the Shanghai Futures Exchange, rebar futures increased 0.36pct to 3,352 yuan (USD 460) per ton, while HRC futures gained 0.44pct to 3,449 yuan (USD 473) per ton. Wire rod futures fell 1.76pct to 3,571 yuan (USD 490) per ton, and stainless steel futures edged down 0.04pct to 13,400 yuan (USD 1,839) per ton.
1 USD / 7.28 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,571 |
-1.76 |
-0.53 |
| HRC | 3,449 |
0.44 |
-0.09 |
| Rebar | 3,352 |
0.36 |
-0.15 |
| Stainless Steel | 13,400 |
-0.04 |
-0.30 |
| Iron Ore | 817 |
0.86 |
-0.06 |
| Coke | 1,786.5 |
2.97 |
2.29 |
| Coking Coal | 1,153.5 |
2.76 |
2.34 |
