Iron ore futures rebounded on Thursday, supported by firm near-term fundamentals and growing expectations of economic stimulus, despite lingering concerns over steel demand.
Chinese blast furnace-based steelmakers continue to ramp up output. While overall steel production has declined, it remains relatively high, underpinned by healthy profit margins. However, the rising output has sparked concerns about oversupply, which could further pressure already weak finished steel prices.
Investor sentiment was also boosted by recent comments from Chinese Premier Li Qiang, who pledged stronger efforts to stimulate domestic consumption. His remarks raised hopes for additional policy support from Beijing to revive economic momentum.
Still, rising iron ore shipments from major exporters such as Australia and Brazil may weigh on prices going forward. Adding to the cautious tone, the China Iron & Steel Association (CISA) warned in its latest monthly report that the domestic steel market could come under increased pressure in the near term due to seasonal demand slowdowns. CISA also urged steel producers to adjust production rationally to avoid further depressing prices.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 0.64pct to 705.5 yuan (USD 98.3) per ton. Dalian coke and coking coal futures also climbed, up 1.86pct and 3.6pct to 1,395.5 yuan (USD 195) and 819.5 yuan (USD 114) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures edged up 0.1pct to 2,973 yuan (USD 414) per ton, while HRC gained 0.39pct to 3,103 yuan (USD 433). Wire rod slipped 0.06pct to 3,271 yuan (USD 456), whereas stainless steel futures advanced 1.16pct to 12,635 yuan (USD 1,761) per ton.
1 USD / 7.17 yuan
CHINESE STEEL FUTURES
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Date: 6/26/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,271 |
-0.06 |
0 |
| HRC | 3,103 |
0.39 |
0.16 |
| Rebar | 2,973 |
0.10 |
-0.10 |
| Stainless Steel | 12,635 |
1.16 |
0.75 |
| Iron Ore | 705.5 |
0.64 |
0.43 |
| Coke | 1,395.5 |
1.86 |
0.57 |
| Coking Coal | 819.5 |
3.60 |
1.83 |
