Iron ore futures declined on Monday as weakening demand fundamentals weighed on market sentiment.
Data from the China Iron and Steel Association (CISA) showed that average daily crude steel output among key member mills fell by 0.9pct between June 21 and 30 compared to the previous ten-day period, reaching 2.12 mln tons per day. Meanwhile, finished steel inventories at these mills rose by 4.7pct, indicating sluggish demand.
Further pressure came from environmental production curbs on sintering operations in Tangshan, a major steel-producing city, which dented iron ore demand.
Additionally, growing trade protectionism is clouding the outlook for Chinese steel exports. Recent import restrictions by Vietnam and Malaysia on Chinese HRC and galvanized steel are expected to affect export volumes, potentially further impacting iron ore consumption.
Despite the softening demand signals, the iron ore market found some near-term support from higher production levels. Blast furnace-based mills in China continue to operate with healthy profit margins, helping to limit the downside.
On the Dalian Commodity Exchange, the most-active September iron ore contract fell 0.68pct to 731 yuan (USD 102) per ton. Coke and coking coal futures also declined by 0.94pct and 1.76pct, settling at 1,422.5 yuan (USD 199) and 835 yuan (USD 117) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures slipped 0.68pct to 3,061 yuan (USD 427), HRC dropped to 3,191 yuan (USD 445), wire rod fell nearly 1pct to 3,310 yuan (USD 462), and stainless steel declined 0.94pct to 12,640 yuan (USD 1,764) per ton.
1 USD / 7.16 yuan
CHINESE STEEL FUTURES
|
Date: 7/07/2025 |
||
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,310 |
-0.99 |
-0.45 |
| HRC | 3,191 |
-0.62 |
-0.31 |
| Rebar | 3,061 |
-0.68 |
-0.36 |
| Stainless Steel | 12,640 |
-0.94 |
-0.71 |
| Iron Ore | 731 |
-0.68 |
-0.21 |
| Coke | 1,422.5 |
-0.9 |
-0.74 |
| Coking Coal | 835 |
-1.76 |
-0.54 |
