Iron ore futures extended their gains on Wednesday, supported by firm short-term fundamentals, though gains were limited by mixed economic data and persistent concerns over demand.
Despite a decline in overall output figures, blast furnace-based steel production remains elevated, supported by healthy profit margins that continue to support iron ore consumption.
However, the upward momentum may prove temporary. A seasonal slowdown in steel demand, coupled with rising protectionist measures against Chinese steel exports, could weigh on iron ore usage in the longer term.
Adding to market caution, recent economic indicators revealed ongoing challenges in China. The country’s producer price index (PPI) fell 3.6pct YoY in June, according to the National Bureau of Statistics. The agency attributed the drop to seasonal declines in raw material manufacturing prices, lower energy costs, and intense price competition among export-driven sectors.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 0.68pct to 736.5 yuan (USD 102.6) per ton. Coke and coking coal futures also advanced, gaining 2.43pct and 3.81pct, respectively, to close at 1,456 yuan (USD 203) and 871.5 yuan (USD 121) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar and HRC futures edged up by 0.07pct and 0.09pct to 3,063 yuan (USD 427) and 3,190 yuan (USD 445) per ton, respectively. Wire rod futures slipped 0.42pct to 3,292 yuan (USD 459), while stainless steel rose 0.35pct to 12,770 yuan (USD 1,780) per ton.
1 USD / 7.17 yuan
CHINESE STEEL FUTURES
|
Date: 7/09/2025 |
||
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,292 |
-0.42 |
-0.58 |
| HRC | 3,190 |
0.09 |
-0.03 |
| Rebar | 3,063 |
0.07 |
0 |
| Stainless Steel | 12,770 |
0.35 |
0.55 |
| Iron Ore | 736.5 |
0.68 |
0.48 |
| Coke | 1,456 |
2.43 |
2.16 |
| Coking Coal | 871.5 |
3.81 |
3.21 |
