Iron ore futures ended a four-day losing streak on Thursday, lifted by improved market sentiment after a U.S. federal court blocked President Donald Trump’s broader tariffs from taking effect.
The court ruled that Trump had overstepped his authority, though the administration has appealed, leaving the outcome uncertain. However, the ruling does not impact the existing 25pct tariffs on autos, steel, and aluminum under Section 232 of the Trade Expansion Act.
Despite the temporary boost, the outlook for iron ore remains bearish. Seasonal weakness in steel demand, along with concerns over excess supply, continues to weigh on the market. The China Iron & Steel Association (CISA), in its latest monthly report, warned that oversupply could destabilize domestic steel prices.
Further pressure on iron ore demand comes from potential steel production curbs that Beijing may introduce in the second half of the year. Additionally, a slowdown in Chinese steel exports, driven by rising global protectionism and ongoing troubles in the property sector, remains a major headwind.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 1.29pct to 707 yuan (USD 98.1) per ton. However, coke futures fell 1.62pct to 1,332 yuan (USD 185), and coking coal futures declined 3.98pct to 759 yuan (USD 105), both weighed down by oversupply.
On the Shanghai Futures Exchange, rebar futures gained 0.47pct to 2,978 yuan (USD 414) per ton, HRC futures rose 0.32pct to 3,110 yuan (USD 432), and wire rod futures increased 0.9pct to 3,258 yuan (USD 453). In contrast, stainless steel futures dipped 0.39pct to 12,690 yuan (USD 1,763) per ton.
1 USD / 7.19 yuan
CHINESE STEEL FUTURES
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Date: 5/29/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,258 |
0.90 |
0.86 |
| HRC | 3,110 |
0.32 |
0.32 |
| Rebar | 2,978 |
0.47 |
0.47 |
| Stainless Steel | 12,690 |
-0.39 |
0.08 |
| Iron Ore | 707 |
1.29 |
1.20 |
| Coke | 1,332 |
-1.62 |
-0.49 |
| Coking Coal | 759 |
-3.98 |
-2.64 |