Iron ore futures extended losses on Wednesday as the market grappled with oversupply worries and weakening steel demand in China.
Blast furnace mills have kept production strong in recent weeks, supported by healthy margins, but consumption has slowed. Prolonged heavy rains and extreme heat disrupted construction activity across several regions, pushing up inventories at major warehouses. Demand from the manufacturing sector has also softened, analysts noted.
Data from the China Iron and Steel Association (CISA) showed member mills’ output rising 2pct in mid-August (Aug 11-20) to 2.115 mln tons, while inventories climbed 4pct to 15.67 mln tons.
Adding to pressure, authorities in Tangshan ordered mills to curb sintering operations from Aug 25 to Sept 3 ahead of a military parade in Beijing. Meanwhile, rising trade restrictions in key importing countries threaten Chinese steel exports, which have so far helped offset domestic weakness.
On the Dalian Commodity Exchange, the most-traded January iron ore contract fell 0.64pct to 775.5 yuan (USD 108.3) per ton. Coking coal dropped 2.82pct to 1,154 yuan (USD 161), while coke also slid 2.82pct to 1,669.5 yuan (USD 233).
On the Shanghai Futures Exchange, rebar futures declined 0.48pct to 3,111 yuan (USD 435), HRC futures fell 0.92pct to 3,349 yuan (USD 468), and wire rod shed 1.22pct to 3,324 yuan (USD 465). Stainless steel eased 0.12pct to 12,850 yuan (USD 1,796) per ton.
1 USD / 7.15 yuan
CHINESE STEEL FUTURES
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Date: 8/27/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,324 |
-1.22 |
-0.99 |
| HRC | 3,349 |
-0.92 |
-0.54 |
| Rebar | 3,111 |
-0.48 |
-0.06 |
| Stainless Steel | 12,850 |
-0.12 |
0.08 |
| Iron Ore | 775.5 |
-0.64 |
-0.13 |
| Coke | 1,669.5 |
-2.82 |
-0.69 |
| Coking Coal | 1,154 |
-3.87 |
-0.56 |
