Iron ore futures climbed for a third consecutive session on Thursday, supported by growing expectations of fresh stimulus and regulatory action from Beijing aimed at curbing aggressive price competition.
Investor sentiment improved after several media reports suggested that Chinese authorities are preparing to introduce tougher measures to rein in cut-throat pricing across key sectors, including steel, which has contributed to persistent deflation.
China’s recent economic data continues to reflect deflationary pressure. The producer price index (PPI) declined 3.6pct YoY in June, according to the National Bureau of Statistics, citing seasonal drops in raw material and energy prices along with fierce pricing competition in export-oriented industries.
Market participants are also pinning hopes on China’s upcoming key policy meeting later this month to deliver new growth-supportive measures, as the country grapples with multiple economic challenges, including trade tensions with the United States.
Adding to the cautious optimism, major steelmaker Baosteel raised domestic HRC prices by 100 yuan (USD 14) per ton for August sales, reflecting expectations of improved market conditions.
However, analysts warned the rally could be short-lived. Any government intervention may also include steel production curbs, which would dent demand for iron ore. Meanwhile, rising protectionist actions targeting Chinese steel exports continue to cloud the outlook for the raw material.
On the Dalian Commodity Exchange, the most-active September iron ore contract edged up 0.68pct to 763.5 yuan (USD 106.3) per ton. Coking coal and coke futures also posted solid gains, rising 4.24pct and 3.56pct, respectively, to close at 897 yuan (USD 125) and 1,497 yuan (USD 209) per ton.
On the Shanghai Futures Exchange, rebar futures rose 1.89pct to 3,123 yuan (USD 435), while HRC increased 2.16pct to 3,262 yuan (USD 454). Wire rod prices gained 1pct to 3,332 yuan (USD 464), and stainless steel rose 1.06pct to 12,865 yuan (USD 1,792) per ton.
1 USD / 7.17 yuan
CHINESE STEEL FUTURES
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Date: 7/10/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,332 |
1.00 |
1.20 |
| HRC | 3,262 |
2.16 |
2.21 |
| Rebar | 3,123 |
1.89 |
1.92 |
| Stainless Steel | 12,865 |
1.06 |
0.74 |
| Iron Ore | 763.5 |
3.67 |
3.54 |
| Coke | 1,497 |
3.56 |
2.74 |
| Coking Coal | 897 |
4.24 |
2.84 |
