Iron ore futures extended gains on Tuesday, supported by expectations of stronger steel production following the lifting of output curbs in Tangshan, imposed earlier for a parade in Beijing. Analysts said higher steel output would drive up iron ore consumption.
Prices also drew support from reports that Guinea’s government is pressuring Rio Tinto to build processing facilities near its Simandou project. With a planned capacity of 120 mln tons and first shipments due in November, Simandou was previously seen as a supply threat to prices. The latest development has raised concerns that export availability could be curbed.
Still, weak Chinese steel mills’ margins, and sluggish steel demand may limit production growth, capping iron ore consumption.
China’s National Development and Reform Commission (NDRC) noted that August was marked by seasonally weak supply and demand, with prices volatile but relatively firm. Steel inventories continued to rise despite earlier high production, adding supply pressure. Demand is expected to see a modest recovery in September, traditionally a stronger month for steel.
A steel trader said that despite the sharp surge in iron ore futures, physical steel demand remains slow, with buyers resisting higher prices.
On the Dalian Commodity Exchange, the most-traded January iron ore contract rose 2.03pct to 805 yuan (USD 112.8) per ton. Coking coal fell 1.66pct to 1,123.5 yuan (USD 158), while coke slipped 1.21pct to 1,597.5 yuan (USD 224) a ton.
On the Shanghai Futures Exchange, rebar was flat at 3,123 yuan (USD 438), HRC gained 0.42pct to 3,349 yuan (USD 470), wire rod edged up 0.12pct to 3,287 yuan (USD 461), and stainless steel rose 0.43pct to 12,950 yuan (USD 1,816) per ton.
1 USD / 7.13 yuan
CHINESE STEEL FUTURES
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Date: 9/9/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,287 |
0.12 |
-0.15 |
| HRC | 3,349 |
0.42 |
-0.09 |
| Rebar | 3,123 |
0 |
-0.29 |
| Stainless Steel | 12,950 |
0.43 |
0.19 |
| Iron Ore | 805 |
2.03 |
1.61 |
| Coke | 1,597.5 |
-1.21 |
-1.41 |
| Coking Coal | 1,123.5 |
-1.66 |
-1.78 |
