Iron ore futures extended gains on Tuesday, supported by improving steel production in China, although higher port-side inventories limited further upside.
Market participants said iron ore demand remains firm as Chinese mills continue to raise output, while improved domestic steel demand has also provided support.
However, higher iron ore inventories at major Chinese ports and ongoing volatility linked to Middle East tensions kept sentiment cautious, capping gains.
Chinese steel traders in the physical market noted that current domestic demand is stable, but rising steel prices are largely driven by higher raw material costs. They warned that if steel demand fails to strengthen, margin pressure on mills could weigh on finished steel prices. Export activity also remains subdued amid freight volatility, with bookings reported lower this month.
Major steelmaker Shagang maintained its long steel prices unchanged for late March sales, reflecting a cautious market outlook.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 0.55pct to 824 yuan (USD 119.5) per ton. Coking coal and coke futures declined by 0.08pct and 0.99pct to 1,249.5 yuan (USD 181) and 1,798 yuan (USD 261) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures increased 0.9pct to 3,145 yuan (USD 456) per ton, while HRC futures rose 0.97pct to 3,324 yuan (USD 482) per ton. Wire rod futures advanced 1.86pct to 3,341 yuan (USD 485), and stainless steel futures edged up to 14,290 yuan (USD 2,073) per ton.
1 USD / 6.89 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,341.00 | ▲ 0.57 | ▲ 0.15 |
| Hot Rolled Coils | 3,324.00 | ▲ 0.21 | ▼ -0.18 |
| Rebar | 3,145.00 | ▼ -0.10 | ▼ -0.29 |
| Stainless Steel | 14,290.00 | ▲ 1.46 | ▲ 1.78 |
| Iron ore | 824.00 | ▲ 0.55 | ▲ 0.61 |
| Coke | 1,798.00 | ▼ -0.99 | ▲ 2.73 |
| Coking Coal | 1,249.50 | ▼ -0.08 | ▼ -3.20 |
