Iron ore futures edged slightly higher on Tuesday, supported by firm short-term fundamentals, though gains were limited by a weakening demand outlook. Chinese steel mills continue to operate at elevated output levels, with only minor declines reported recently, sustaining demand for iron ore.
Analysts note that recent environmental curbs targeting sintering operations have had limited impact on blast furnace activity, meaning steel production, and consequently iron ore consumption, remains largely unaffected.
However, the market continues to face pressure from growing protectionist measures against Chinese steel exports and weak demand from the struggling property sector, once a key driver of steel consumption.
Trade tensions also resurfaced after former U.S. President Donald Trump announced new tariffs on imports from 14 countries, including Japan and South Korea, set to take effect from August 1. This has heightened uncertainty around global trade flows.
On the Dalian Commodity Exchange, the most-active September iron ore contract rose 0.14pct to 733 yuan (USD 102.2) per ton. Coke and coking coal futures also gained 0.14pct and 0.84pct, closing at 1,424.5 yuan (USD 199) and 843.5 yuan (USD 118) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar slipped 0.13pct to 3,063 yuan (USD 427), HRC edged down 0.06pct to 3,191 yuan (USD 445), wire rod rose 0.18pct to 3,311 yuan (USD 462), and stainless steel climbed 0.32pct to 12,700 yuan (USD 1,771) per ton.
1 USD / 7.17 yuan
CHINESE STEEL FUTURES
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Date: 7/08/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,311 |
0.18 |
0.03 |
| HRC | 3,191 |
-0.06 |
0 |
| Rebar | 3,063 |
-0.13 |
0.07 |
| Stainless Steel | 12,700 |
0.32 |
0.47 |
| Iron Ore | 733 |
0.14 |
0.27 |
| Coke | 1,424.5 |
0.14 |
0.14 |
| Coking Coal | 843.5 |
0.84 |
1.01 |
