Iron ore futures surged on Tuesday as the extension of the U.S.-China trade truce boosted market sentiment. The two largest global economies agreed to prolong their truce for another 90 days, until November 10, 2025, easing fears of an escalating trade war.
Sentiment was further lifted by reports that authorities ordered steel mills in Tangshan, a major steel hub, to temporarily halt production ahead of a military parade in Beijing starting August 25. While production cuts could theoretically dampen iron ore demand, analysts noted that limiting steel output tends to lift finished steel prices, improve mill margins, and ultimately support iron ore demand.
In recent months, Chinese steel mills, particularly blast furnace-based producers, have maintained high output thanks to healthy profit margins.
Coking coal futures also jumped sharply, driven by inspections at coal mines aimed at curbing excess output, which raised concerns about supply disruptions.
On the Dalian Commodity Exchange, the most-traded September iron ore contract climbed 2.36pct to 801 yuan (USD 111.4) per ton. Coking coal surged nearly 7pct to 1,313 yuan (USD 183), while coke gained 4.5pct to 1,812 yuan (USD 252) per ton.
On the Shanghai Futures Exchange, rebar futures rose 0.96pct to 3,258 yuan (USD 453), HRC gained 1.4pct to 3,484 yuan (USD 485), wire rod increased 1.16pct to 3,487 yuan (USD 485), and stainless steel added 0.38pct to 13,200 yuan (USD 1,837) per ton.
1 USD / 7.18 yuan
CHINESE STEEL FUTURES
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Date: 8/12/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,487 |
1.16 |
0.98 |
| HRC | 3,484 |
1.40 |
0.55 |
| Rebar | 3,258 |
0.96 |
0.25 |
| Stainless Steel | 13,200 |
0.38 |
-0.19 |
| Iron Ore | 801 |
2.36 |
0.56 |
| Coke | 1,812 |
4.50 |
7.23 |
| Coking Coal | 1,313 |
6.97 |
4.34 |
