Iron ore futures fell on Friday, pressured by declining steel production and subdued market sentiment during pre-holiday trading.
Blast furnace-based steel mills are increasingly suspending operations for maintenance, responding to weakening demand amid a seasonal slowdown in construction activity. The China Iron & Steel Association (CISA), in its latest monthly report, warned that oversupply could destabilize domestic steel prices.
Adding to market volatility, a U.S. court reinstated former President Trump’s sweeping tariffs just a day after a federal court had blocked them.
Looking ahead, concerns over potential steel production curbs in the second half of the year, part of Beijing’s broader efforts to control emissions and manage output, are putting further pressure on iron ore demand. Additionally, a slowdown in Chinese steel exports, fueled by rising global protectionism and continued weakness in the property sector, remains a significant headwind.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 0.43pct to 702 yuan (USD 97.5) per ton, marking a 0.64pct decline compared to last Friday’s morning session.
Other raw materials also retreated. Coke futures dropped 2.13pct to 1,308 yuan (USD 182), while coking coal futures plunged more than 5pct to 726 yuan (USD 101), affected by persistent oversupply.
On the Shanghai Futures Exchange, rebar futures slipped 0.34pct to 2,961 yuan (USD 411) per ton, and HRC futures declined 0.81pct to 3,076 yuan (USD 427). Meanwhile, wire rod futures edged up 0.59pct to 3,264 yuan (USD 454), and stainless steel futures posted a modest gain of 0.12pct to 12,685 yuan (USD 1,763) a ton.
Chinese markets will remain closed until Tuesday for the Dragon Boat Festival holidays.
1 USD / 7.19 yuan
CHINESE STEEL FUTURES
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Date: 5/30/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,264 |
0.59 |
0.18 |
| HRC | 3,076 |
-0.81 |
-1.11 |
| Rebar | 2,961 |
-0.34 |
-0.57 |
| Stainless Steel | 12,685 |
0.12 |
-0.04 |
| Iron Ore | 702 |
-0.43 |
-0.71 |
| Coke | 1,308 |
-2.13 |
-1.83 |
| Coking Coal | 726 |
-5.28 |
-4.55 |