Iron ore futures extended gains on Tuesday, supported by firm demand and strong fundamentals in the steelmaking sector. A rise in steel production by Chinese mills, driven by healthy profit margins and falling port-side inventories, continued to underpin near-term demand for iron ore.
Broader commodity markets were also buoyed by a stock market rally, following a surprise jump in China’s Caixin Services Purchasing Managers’ Index (PMI), which rose to 52.6 in July from 50.6 in June. The surge in coking coal futures, amid supply concerns, further lifted sentiment across raw material and steel markets.
However, the outlook faces some uncertainty, as potential steel output restrictions loom ahead of Beijing’s military parade in September. Increased environmental inspections in the Beijing-Tianjin-Hebei region could lead to production curbs, which may temporarily support steel prices.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 1.2pct to 798.5 yuan (USD 111) per ton. Coking coal jumped 6.92pct to 1,182 yuan (USD 164), while coke advanced 3.16pct to 1,634.5 yuan (USD 227).
Meanwhile, on the Shanghai Futures Exchange, rebar futures gained 1.38pct to 3,233 yuan (USD 450), HRC rose 1.89pct to 3,457 yuan (USD 481), wire rod added 2.06pct to 3,471 yuan (USD 483), and stainless steel climbed 0.9pct to 12,960 yuan (USD 1,803) per ton.
1 USD / 7.18 yuan
CHINESE STEEL FUTURES
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Date: 8/05/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,471 |
2.06 |
0.69 |
| HRC | 3,417 |
1.89 |
1.16 |
| Rebar | 3,204 |
1.38 |
0.90 |
| Stainless Steel | 12,925 |
0.90 |
0.27 |
| Iron Ore | 790.5 |
1.20 |
1.00 |
| Coke | 1,615 |
3.16 |
1.19 |
| Coking Coal | 1,141 |
6.92 |
3.47 |
