Iron ore futures continued to decline on Wednesday as a weak demand outlook weighed heavily on market sentiment.
Recent signs of slowing steel production have raised concerns over iron ore consumption. Weaker demand for finished steel has eroded mill profitability, prompting speculation that some mills may accelerate maintenance schedules in response.
Adding to the bearish sentiment, rumors of potential steel output curbs resurfaced this week, further dampening expectations for iron ore demand.
The overall outlook for the steel sector remains pessimistic, largely due to the absence of meaningful stimulus measures from Beijing. Ongoing challenges in the property sector, a key consumer of steel, continue to drag down prospects for a demand recovery.
The most-traded September iron ore contract on the Dalian Commodity Exchange slipped 0.14pct to 698.5 yuan (USD 97) per ton. Coke futures dropped 1.91pct to 1,338.5 yuan (USD 186) per ton, while coking coal futures fell 2.2pct to 779 yuan (USD 108) per ton.
On the Shanghai Futures Exchange, rebar futures declined 0.77pct to 2,964 yuan (USD 412) per ton, while HRC futures edged down 0.55pct to 3,100 yuan (USD 431) per ton. Wire rod futures increased 1.96pct to 3,230 yuan (USD 449) per ton. Stainless steel futures dropped 1.32pct to 12,680 yuan (USD 1,761) per ton.
1 USD / 7.19 yuan
CHINESE STEEL FUTURES
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Date: 5/28/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,230 |
1.96 |
0 |
| HRC | 3,100 |
-0.55 |
-0.35 |
| Rebar | 2,964 |
-0.77 |
-0.54 |
| Stainless Steel | 12,680 |
-1.32 |
-1.38 |
| Iron Ore | 698.5 |
-0.14 |
0 |
| Coke | 1,338.5 |
-1.91 |
-1.91 |
| Coking Coal | 779 |
-2.20 |
-2.63 |
