Dalian iron ore futures rose on Friday, supported by steady steel production and resilient demand. However, the broader market outlook remains uncertain.
Chinese blast furnace-based steel mills continue to operate profitably, benefiting from lower raw material costs. Despite the seasonal slowdown typically seen during the summer, steel demand has not dropped significantly.
According to market insiders, inventories of both finished steel at major Chinese warehouses and iron ore at major ports declined this week, lending additional support to iron ore prices.
Nevertheless, several headwinds persist. The ongoing crisis in China’s property sector, growing protectionist measures from major steel-importing nations, and rising trade tensions with the United States may weigh on Chinese steel exports. Additionally, prolonged geopolitical instability in the Middle East could negatively impact global demand.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose by 0.93pct to 703 yuan (USD 97.7) per ton. Compared to last Friday’s morning close, the contract posted a slight weekly decline of 0.21pct.
Other raw materials also saw gains, with coke and coking coal futures climbing 1.21pct and 1.08pct to 1,384.5 yuan (USD 193) and 795 yuan (USD 111) per ton, respectively.
On the Shanghai Futures Exchange, steel futures showed mixed performance. Rebar rose 0.23pct to 2,992 yuan (USD 416) a ton, while HRC increased 0.39pct to 3,116 yuan (USD 433) per ton. Wire rod gained 0.33pct to 3,315 yuan (USD 461), whereas stainless steel slipped 0.44pct to 12,505 yuan (USD 1,739) per ton.
1 USD / 7.18 yuan
CHINESE STEEL FUTURES
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Date: 6/20/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,315 |
0.33 |
0.27 |
| HRC | 3,116 |
0.39 |
0.42 |
| Rebar | 2,992 |
0.23 |
0.20 |
| Stainless Steel | 12,505 |
-0.44 |
-0.56 |
| Iron Ore | 703 |
0.93 |
0.71 |
| Coke | 1,384.5 |
1.21 |
0.76 |
| Coking Coal | 795 |
1.08 |
0.57 |