Iron ore futures climbed on Friday, supported by expectations of improved demand following positive economic signals from China.
Market sentiment strengthened as China’s annual Two Sessions parliamentary meetings approach their conclusion next week, which is also expected to mark the end of environmental-related steel output curbs. Analysts noted that low iron ore inventories at Chinese steel mills could trigger restocking in the near term.
Prices also gained support after Reuters reported that China’s state-run iron ore buyer has widened restrictions on purchasing some seaborne cargoes from major supplier BHP, raising supply concerns in the market. In addition, the typical seasonal improvement in steel demand during March is expected to support consumption.
Macro sentiment improved after Chinese Premier Li Qiang outlined economic priorities during the parliamentary meeting, setting a 2026 GDP growth target of 4.5-5pct and announcing measures aimed at stabilizing the property sector and boosting domestic consumption.
However, the longer-term outlook for iron ore remains uncertain due to high inventories at major Chinese ports and declining steel consumption linked to the property crisis.
In the physical market, Chinese steel traders said the government’s economic pledges were encouraging and may help boost domestic steel demand. Meanwhile, tensions in the Middle East have prompted some Chinese mills to shift export allocations to the domestic market.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 1.38pct to 772 yuan (USD 111.7) per ton, gaining 2.86pct compared with last Friday’s morning session. Coking coal and coke futures increased 1.86pct and 1.47pct to 1,123 yuan (USD 163) per ton and 1,695.5 yuan (USD 245) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures rose 0.26pct to 3,088 yuan (USD 447) per ton, while HRC futures increased 0.31pct to 3,230 yuan (USD 468) per ton. Wire rod futures edged higher to 3,339 yuan (USD 484) per ton, while stainless steel futures fell 0.49pct to 14,205 yuan (USD 2,057) per ton.
1 USD / 6.9 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,339.00 | ▲ 0.06 | ▼ -0.06 |
| Hot Rolled Coils | 3,230.00 | ▲ 0.31 | ▲ 0.65 |
| Rebar | 3,088.00 | ▲ 0.26 | ▲ 0.42 |
| Stainless Steel | 14,205.00 | ▼ -0.49 | ▲ 0.70 |
| Iron ore | 772.00 | ▲ 1.38 | ▲ 1.68 |
| Coke | 1,695.50 | ▲ 1.47 | ▲ 1.12 |
| Coking Coal | 1,123.00 | ▲ 1.86 | ▲ 1.56 |
