Iron ore futures rose on Wednesday, supported by firm near-term fundamentals despite lingering demand concerns.
While overall steel production has declined, blast furnace-based producers have maintained high output levels, buoyed by healthy profit margins.
According to the National Bureau of Statistics (NBS), China produced 83.18 mln tons of crude steel in June 2025. For the first half of the year, output totaled 514.83 mln tons, down 3pct YoY. The decline is partly attributed to lower operating rates among electric arc furnace (EAF) producers, who have faced weak profitability or even losses. EAF production is more sensitive to scrap prices than to iron ore, which explains the divergence in production trends.
Despite today’s gains, the outlook for iron ore remains cautious due to persistent challenges in China’s property sector, potential steel output curbs, rising global protectionist measures against Chinese steel exports, and the seasonal demand slowdown.
On the Dalian Commodity Exchange, the most-traded September iron ore contract climbed 1.05pct to 773 yuan (USD 107.7) per ton. In contrast, coking coal and coke futures declined by 1.45pct and 1.48pct, settling at 1,494.5 yuan (USD 208) and 897 yuan (USD 125) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar slipped 0.48pct to 3,106 yuan (USD 433) per ton. HRC dipped 0.31pct to 3,253 yuan (USD 454), wire rod fell 0.45pct to 3,351 yuan (USD 467), and stainless steel eased 0.12pct to 12,670 yuan (USD 1,767) per ton.
1 USD / 7.17 yuan
CHINESE STEEL FUTURES
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Date: 7/16/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,351 |
-0.45 |
0.09 |
| HRC | 3,253 |
-0.31 |
-0.18 |
| Rebar | 3,106 |
-0.48 |
-0.26 |
| Stainless Steel | 12,670 |
-0.12 |
-0.04 |
| Iron Ore | 773 |
1.05 |
0.78 |
| Coke | 1,494.5 |
-1.45 |
-1.30 |
| Coking Coal | 897 |
-1.48 |
-1.62 |
