Iron ore futures posted gains on Thursday, supported by optimism following China’s latest economic policy announcements.
Market sentiment improved after Premier Li Qiang outlined economic priorities during the annual parliamentary meeting, setting a 2026 GDP growth target of 4.5-5pct, slightly below last year’s 5pct expansion. Beijing also introduced policy measures aimed at stabilizing the property sector and boosting domestic consumption, improving the demand outlook for steel. In addition, authorities reiterated plans to curb steel overcapacity as national consumption has weakened amid the prolonged real estate downturn, once the country’s largest steel-consuming sector.
However, analysts remain cautious about the sustainability of the rally, noting that iron ore fundamentals remain weak due to ample supply and subdued steel demand in the near term, suggesting the gains were largely driven by macro sentiment.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 1.27pct to 759 yuan (USD110.1) per ton. Coking coal futures fell 0.36pct to 1,105.5 yuan (USD160), while coke futures slipped to 1,676.5 yuan (USD243) per ton, though both remained higher compared with the previous morning session.
On the Shanghai Futures Exchange, rebar futures edged up to 3,075 yuan (USD446) per ton, while HRC futures eased 0.18pct to 3,209 yuan (USD466). Wire rod futures increased 0.42pct to 3,341 yuan (USD485), while stainless steel futures declined 0.39pct to 14,105 yuan (USD2,046) per ton.
1 USD / 6.89 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,341.00 | ▲ 0.42 | ▲ 0.93 |
| Hot Rolled Coils | 3,209.00 | ▼ -0.19 | ▼ -0.09 |
| Rebar | 3,075.00 | ▲ 0.10 | ▲ 0.13 |
| Stainless Steel | 14,105.00 | ▼ -0.39 | ▼ -0.82 |
| Iron ore | 759.00 | ▲ 1.27 | ▲ 0.92 |
| Coke | 1,676.50 | ▼ -0.06 | ▲ 0.27 |
| Coking Coal | 1,105.50 | ▼ -0.36 | ▲ 0.77 |
