Iron ore futures rebounded on Thursday, driven by hopes of seasonal steel demand, though escalating trade tensions capped gains.
Market optimism was fueled by expectations of increased steel production following Beijing’s annual parliamentary meeting and a seasonal rise in steel demand, as improved weather typically boosts construction activity. A decline in finished steel inventory at major Chinese warehouses also signaled firm domestic demand.
However, growing protectionist measures against Chinese steel products and ongoing trade tensions between China, the U.S., and other major partners limited the upside. Additionally, rumors of Beijing’s plans to cut crude steel production capacity weighed on the iron ore outlook, though such measures could support steel prices.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 0.45pct to 780 yuan (USD 107.6) per ton. Coke and coking coal futures climbed 1.91pct and 2.44pct, settling at 1,655 yuan (USD 228) and 1,092 yuan (USD 151) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures gained 1.21pct to 3,256 yuan (USD 449) per ton, while HRC futures rose 1.7pct to 3,413 yuan (USD 471) per ton. Wire rod futures increased 1.02pct to 3,458 yuan (USD 477) per ton, and stainless steel futures climbed 0.59pct to 13,585 yuan (USD 1,874) per ton.
1 USD / 7.24 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,458 |
1.02 |
1.42 |
| HRC | 3,413 |
1.70 |
1.46 |
| Rebar | 3,256 |
1.21 |
0.92 |
| Stainless Steel | 13,585 |
0.59 |
0.15 |
| Iron Ore | 780 |
0.45 |
1.35 |
| Coke | 1,655 |
1.91 |
1.81 |
| Coking Coal | 1,092 |
2.44 |
1.74 |
