Iron ore futures increased on Wednesday, supported by firm steel demand and cost pressures, although concerns over slowing steel production growth and rising supply limited gains.
Chinese steel traders said domestic steel prices remained firm, with buying activity improving ahead of the May holidays. Higher freight and energy costs, linked to tensions in the Middle East, also provided cost support to both steel and iron ore prices.
However, market analysts expect Chinese steel production to approach its peak and slow in the coming weeks, potentially weighing on iron ore consumption as supply rises and port inventories remain high.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose by 0.9pct to 787.5 yuan (USD 115.2) per ton. Coking coal and coke futures both increased by 0.71pct to 1,273.5 yuan (USD 186) and 1,834 yuan (USD 268) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures rose by 0.57pct to 3,195 yuan (USD 467) per ton, while HRC futures increased by 0.8pct to 3,407 yuan (USD 499) per ton. Wire rod declined by 3.56pct to 3,226 yuan (USD 472) per ton, while stainless steel gained 0.71pct to 15,530 yuan (USD 2,272) per ton. 
1 USD / 6.83 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,226.00 | ▼ -3.56 | ▼ -1.67 |
| Hot Rolled Coils | 3,407.00 | ▲ 0.80 | ▲ 0.85 |
| Rebar | 3,195.00 | ▲ 0.57 | ▲ 0.59 |
| Stainless Steel | 15,530.00 | ▲ 0.71 | ▲ 1.19 |
| Iron ore | 787.50 | ▲ 0.90 | ▲ 0.89 |
| Coke | 1,834.00 | ▲ 0.71 | ▲ 0.87 |
| Coking Coal | 1,273.50 | ▲ 0.71 | ▲ 0.55 |