Iron ore futures fell on Monday as steel production curbs and weakening steel demand weighed on market sentiment.
Chinese Steel output is expected to be hit by new environmental restrictions in Tangshan and other regions near Beijing, where authorities have tightened controls ahead of this week’s parade. While analysts believe the direct impact may be limited, slowing demand could push mills to bring forward maintenance outages.
Iron ore prices have been supported recently by robust steel production and strong mill margins. However, higher output is now contributing to oversupply, with inventories of finished steel rising at major Chinese warehouses.
China’s manufacturing sector contracted for a fifth consecutive month in August, according to the National Bureau of Statistics. The official manufacturing PMI inched up to 49.4 from 49.3 in July but remained below the 50 threshold that signals expansion. The steel industry PMI also slipped, dropping to 49.8 from 50.5, underscoring mounting challenges for the sector.
Reflecting the cautious outlook, leading steelmaker Shagang has kept its long products list prices unchanged for September 1-10.
On the Dalian Commodity Exchange, the most-traded January iron ore contract fell 2.67pct to 766 yuan (USD 107.4) per ton. Coking coal and coke futures declined 3.29pct and 3.54pct to 1,118.5 yuan (USD 157) and 1,594.5 yuan (USD 224) per ton, respectively.
On the Shanghai Futures Exchange, rebar slipped 1.89pct to 3,115 yuan (USD 437), HRC futures dropped 1.58pct to 3,303 yuan (USD 463), and wire rod fell 1.54pct to 3,265 yuan (USD 458) per ton. Stainless steel futures, however, rose 1.13pct to 12,950 yuan (USD 1,816) per ton.
1 USD / 7.13 yuan
CHINESE STEEL FUTURES
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Date: 9/1/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,265 |
-1.54 |
-1.44 |
| HRC | 3,303 |
-1.58 |
-1.57 |
| Rebar | 3,115 |
-1.89 |
0.80 |
| Stainless Steel | 12,950 |
1.13 |
1.04 |
| Iron Ore | 766 |
-2.67 |
-2.81 |
| Coke | 1,594.5 |
-3.54 |
-3.04 |
| Coking Coal | 1,118.5 |
-3.29 |
-2.91 |
