Iron ore futures recovered on Wednesday, although the demand outlook for this crucial steelmaking ingredient remains uncertain. The recent gains were largely driven by profit-taking, as traders capitalized on short-term opportunities in the iron ore market.
Meanwhile, speculation about potential disruptions in coal supply from Mongolia, China’s leading coal supplier, sparked a surge in coal and coking coal prices. Market rumors suggest that Mongolia may introduce a 20pct export duty on coal, which contributed to a broader uptick in commodity prices.
Despite the temporary rebound, the long-term outlook for iron ore remains bearish. Slowing steel demand, growing protectionist trade measures targeting Chinese steel exports, and potential steel production curbs from Beijing aimed at reducing excess capacity are all expected to weigh on iron ore demand.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose by 1.37pct to 704.5 yuan (USD 97.9) per ton. Coke futures jumped 5.72pct to 1,367.5 yuan (USD 190), while coking coal futures climbed sharply by 7.19pct to 768 yuan (USD 107) per ton.
Over on the Shanghai Futures Exchange, rebar futures increased by 1.57pct to 2,974 yuan (USD 413) per ton, and HRC futures rose by 1.61pct to 3,097 yuan (USD 430) a ton. Wire rod futures gained 1.14pct to 3,296 yuan (USD 458), while stainless steel futures edged up by nearly 0.6pct to 12,720 yuan (USD 1,768) per ton.
1 USD / 7.19 yuan
CHINESE STEEL FUTURES
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Date: 6/4/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,296 |
1.14 |
1.03 |
| HRC | 3,097 |
1.61 |
1.45 |
| Rebar | 2,974 |
1.57 |
1.55 |
| Stainless Steel | 12,720 |
0.59 |
0.71 |
| Iron Ore | 704.5 |
1.37 |
1.28 |
| Coke | 1,367.5 |
5.72 |
5.01 |
| Coking Coal | 768 |
7.19 |
6.38 |