Iron ore futures declined on Friday, pressured by ongoing concerns over the global demand outlook, even as short-term demand remains relatively strong.
Trade tensions between Beijing and Washington, coupled with protectionist measures targeting Chinese steel in several countries, continue to pose long-term challenges to iron ore demand.
Goldman Sachs forecasts iron ore prices to drop to USD 90 by end-2025 and USD 80 by Q4 2026, citing a supply surplus expected from the second half of this year. The firm also cut its ex-China seaborne demand growth estimate from 5pct to 3pct.
In the near term, iron ore demand remains supported by solid domestic steel consumption and higher steel production levels.
On the Dalian Commodity Exchange, the most-active September iron ore contract dropped 1.76pct to 699 yuan (USD 95.7) per ton. This marked a 1.27pct decline compared to the closing price of last Friday’s morning session and the contract’s second straight weekly loss.
Dalian coke and coking coal futures fell by 1.05pct and 0.68pct, respectively, to 1,552.5 yuan (USD 213) and 952.5 yuan (USD 130) per ton.
On the Shanghai Futures Exchange, rebar futures slipped 0.81pct to 3,076 yuan (USD 421) per ton, while HRC futures dropped 0.66pct to 3,181 yuan (USD 436). Wire rod futures bucked the trend, rising 0.48pct to 3,354 yuan (USD 459), whereas stainless steel futures edged down 0.62pct to 12,780 yuan (USD 1,750) per ton.
1 USD / 7.3 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,354 |
0.48 |
0.83 |
| HRC | 3,181 |
-0.66 |
-0.31 |
| Rebar | 3,076 |
-0.81 |
-0.52 |
| Stainless Steel | 12,780 |
-0.62 |
-0.51 |
| Iron Ore | 699 |
-1.76 |
-1.14 |
| Coke | 1,552.5 |
-1.05 |
-0.19 |
| Coking Coal | 952.5 |
-0.68 |
0.21 |