Iron ore futures fell further on Thursday as demand concerns resurfaced following weaker-than-expected factory activity in China.
The country’s official manufacturing PMI dropped to 49.3 in July, down 0.4 points from the previous month, according to the National Bureau of Statistics (NBS). The decline was attributed to seasonal slowdowns, high temperatures, heavy rainfall, and flooding in parts of the country.
Analysts noted that the dip in PMI also signals a slowdown in export momentum, which had previously surged ahead of anticipated U.S. tariff hikes.
Severe weather has triggered flood warnings across several regions, threatening to disrupt construction activity and further weigh on steel demand. This is already reflected in rising finished steel inventories at major Chinese warehouses.
Market sentiment was further dampened by the lack of any major stimulus announcements from a key government meeting concluded the day before. However, Beijing’s efforts to curb aggressive pricing in key sectors and the solid profit margins of blast furnace-based steelmakers are expected to offer some short-term support for iron ore.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 2.38pct to 779 yuan (USD 108.4) per ton. Coking coal plunged nearly 8pct to 1,045.5 yuan (USD 146), while coke dropped 4.93pct to 1,601 yuan (USD 223) a ton.
On the Shanghai Futures Exchange, rebar futures slid 4.19pct to 3,205 yuan (USD 446), HRC fell 3.56pct to 3,390 yuan (USD 472) per ton, wire rod declined 4.46pct to 3,410 yuan (USD 475), and stainless steel eased 1.04pct to 12,805 yuan (USD 1,783) per ton.
1 USD / 7.18 yuan
CHINESE STEEL FUTURES
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Date: 7/31/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,410 |
-4.46 |
-4.22 |
| HRC | 3,390 |
-3.56 |
-3.33 |
| Rebar | 3,205 |
-4.19 |
-4.43 |
| Stainless Steel | 12,805 |
-1.04 |
-0.90 |
| Iron Ore | 779 |
-2.38 |
-2.44 |
| Coke | 1,601 |
-4.93 |
-2.00 |
| Coking Coal | 1,045.5 |
-7.97 |
-7.17 |
