Iron ore futures continued to decline on Wednesday as market sentiment was weighed down by speculation about potential steel production cuts in China.
According to several Chinese steel traders, the government is reportedly planning significant reductions, with some suggesting cuts of 50 mln tons in 2025 and 20 mln tons in 2026. However, these claims have not been confirmed by major news sources. The rumors impacted futures trading, causing a decline in steelmaking raw material futures, while steel futures rose during the morning session.
Meanwhile, steady domestic steel demand in China and optimism ahead of the upcoming National People’s Congress, where analysts anticipate ambitious economic growth targets from Beijing, helped support positive market sentiment.
Earlier this week, futures faced pressure due to increasing protectionist measures against Chinese steel exports, raising concerns about the sector’s outlook.
On the Dalian Commodity Exchange, the most-traded May iron ore contract dropped 0.98pct to 812 yuan (USD 111.9) per ton. Coke and coking coal futures also declined, falling 0.95pct to 1,665.5 yuan (USD 230) per ton and 0.55pct to 1,088 yuan (USD 150) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures rose 1.24pct to 3,339 yuan (USD 460) per ton, while HRC futures increased 1.18pct to 3,432 yuan (USD 473) per ton. Wire rod futures edged up 0.57pct to 3,528 yuan (USD 486) per ton, while stainless steel futures slipped 0.3pct to 13,165 yuan (USD 1,815) per ton.
1 USD / 7.25 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,528 |
0.57 |
0.40 |
| HRC | 3,432 |
1.18 |
1.63 |
| Rebar | 3,339 |
1.24 |
1.98 |
| Stainless Steel | 13,165 |
-0.30 |
0.27 |
| Iron Ore | 812 |
-0.98 |
-0.12 |
| Coke | 1,665.5 |
-0.95 |
-0.39 |
| Coking Coal | 1,088 |
-0.55 |
0.28 |
