Iron ore futures fell on Friday as rising supply stoked concerns among traders, although the near-term outlook remains firm due to resilient steel production.
Exports from Australia’s Port Hedland rose to 49.1 mln tons in June, up 1.4pct YoY and 8.2pct month-on-month, adding to market fears of oversupply. This followed Vale’s 3.7pct YoY increase in Q2 iron ore output and Fortescue’s Q2 shipments of 55.2 mln tons, up from 53.7 mln tons a year earlier.
Despite supply-side pressure, demand remains supported by continued high steel production among blast furnace-based producers, benefiting from solid profit margins. This is expected to limit downside pressure on iron ore prices.
Markets are now focused on next week’s key Chinese government meeting for signals on future economic and infrastructure policies.
Meanwhile, other steelmaking inputs and finished steel futures posted strong gains. Coking coal prices surged on reports that authorities plan to curb overproduction at domestic mines. Steel prices rose, boosted by Beijing’s measures to rein in aggressive price competition and last weekend’s launch of a major hydropower construction project.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 1.11pct to 802.5 yuan (USD 112.1) per ton. However, prices still posted a 2.2pct weekly gain.
Coking coal futures jumped 7.8pct to 1,259 yuan (USD 176), while coke rose 2.38pct to 1,763 yuan (USD 246) per ton.
On the Shanghai Futures Exchange, rebar climbed 2.32pct to 3,356 yuan (USD 469), HRC gained 1.98pct to 3,507 yuan (USD 490), wire rod rose 1.55pct to 3,601 yuan (USD 503), and stainless steel increased 0.93pct to 13,030 yuan (USD 1,820) per ton.
1 USD / 7.15 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 | 3,601 |
1.55 |
0.94 |
| HRC | 3,507 |
1.98 |
1.45 |
| Rebar | 3,356 |
2.32 |
1.85 |
| Stainless Steel | 13,030 |
0.93 |
0.73 |
| Iron Ore | 802.5 |
-1.11 |
-1.06 |
| Coke | 1,763 |
2.38 |
1.59 |
| Coking Coal | 1,259 |
7.98 |
4.81 |
