Iron ore futures extended their decline on Thursday, pressured by rising supply from major producers. In contrast, coking coal prices continued to climb amid persistent supply concerns.
Brazil’s Vale reported a 3.7pct YoY increase in Q2 iron ore output, while Fortescue shipped 55.2 mln tons during the quarter, up from 53.7 mln tons a year earlier.
Despite the downward pressure, near-term fundamentals for iron ore remain relatively strong. Blast furnace-based mills are ramping up production, supported by healthy profit margins and improved demand outlook. Market sentiment was also buoyed by Beijing’s recent efforts to curb excessive pricing in key sectors and the launch of construction on the world’s largest hydroelectric dam, expected to support steel demand.
Meanwhile, coking coal futures surged following reports of government inspections at coal mines across key producing regions, including Shanxi, Inner Mongolia, Anhui, Henan, Guizhou, Shaanxi, Ningxia, and Xinjiang, raising fears of tighter supply.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 0.55pct to 811 yuan (USD 113.1) per ton. Coking coal futures jumped nearly 8pct to 1,198.5 yuan (USD 167), while coke futures rose 1.97pct to 1,735 yuan (USD 242) per ton.
Steel futures on the Shanghai Futures Exchange showed mixed results. Rebar rose 0.34pct to 3,294 yuan (USD 460), and HRC edged up 0.35pct to 3,456 yuan (USD 482). In contrast, wire rod futures dropped 1.22pct to 3,567 yuan (USD 498), while stainless steel slipped 0.08pct to 12,935 yuan (USD 1,805) per ton.
1 USD / 7.16 yuan
CHINESE STEEL FUTURES
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Date: 7/23/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,567 |
-1.22 |
1.60 |
| HRC | 3,456 |
0.35 |
0.52 |
| Rebar | 3,294 |
0.34 |
0.61 |
| Stainless Steel | 12,935 |
-0.08 |
0.27 |
| Iron Ore | 811 |
-0.55 |
-0.12 |
| Coke | 1,735 |
1.97 |
1.59 |
| Coking Coal | 1,198.5 |
7.97 |
5.26 |
