Iron ore prices dipped on Friday, pressured by rising inventories at Chinese ports and weak steel demand, both of which continue to reinforce a bearish outlook for the market.
Port-side iron ore stocks have climbed to their highest level in more than three years, according to market sources, adding to concerns about oversupply. At the same time, the seasonal slowdown in steel consumption has prompted mills to cut output and bring forward maintenance plans to protect already thin margins, reducing iron ore consumption.
Uncertainty has also risen following reports that China’s Ministry of Commerce plans to introduce a steel export licensing system aimed at curbing shipments next year. Chinese steel exports are set to reach a record high in 2025, and while they have helped offset weak domestic demand, they have also contributed to escalating trade tensions and prompted several countries to adopt protective measures.
The licensing news comes shortly after Beijing concluded its annual Central Economic Work Conference, where leaders pledged to maintain strong fiscal spending and adopt flexible monetary tools to support domestic demand. The commitments follow China’s record USD 1 trillion trade surplus in the first eleven months of 2025, a figure that has added to friction with major trading partners, particularly the United States.
On the Dalian Commodity Exchange, the most-traded May iron ore contract slipped 0.33pct to 760.5 yuan (USD 107.8) per ton, slightly higher than Thursday morning’s close but down more than 3pct from last Friday’s closing level.
Coking coal fell 4.33pct to 1,016.5 yuan (USD 144), while coke dropped 3.06pct to 1,475 yuan (USD 209) per ton.
On the Shanghai Futures Exchange, rebar declined 0.87pct to 3,060 yuan (USD 434), HRC eased 0.83pct to 3,232 yuan (USD 458), wire rod fell 1.92pct to 3,321 yuan (USD 471), and stainless steel slipped 0.71pct to 12,565 yuan (USD 1,781) per ton.
1 USD / 7.05 yuan
