Iron ore futures gained on Monday, supported by firm near-term demand, though upside was limited by reports of production cuts in a key steel hub.
Blast-furnace based steel mills maintained high output levels, buoyed by healthy margins and a recovery in domestic finished steel prices.
Sentiment was further lifted after Beijing eased some housing purchase restrictions, allowing residents to buy new and second-hand homes, a policy that Shanghai and Shenzhen may reportedly adopt, potentially benefiting the steel sector.
Adding to the positive tone, Baosteel raised domestic HRC prices by USD 28 per ton for September deliveries.
However, market sources said authorities instructed Tangshan steel mills to temporarily halt production ahead of a military parade in Beijing, a move likely to dampen iron ore consumption.
Longer-term headwinds remain, including rising trade protectionism against Chinese steel products and potential output curbs aimed at reducing overcapacity.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 0.82pct to 796.5 yuan (USD 110.9) per ton. Coking coal climbed nearly 3pct to 1,256 yuan (USD 175), while coke gained 1.97pct to 1,681 yuan (USD 234) per ton.
On the Shanghai Futures Exchange, rebar futures advanced 1.09pct to 3,250 yuan (USD 453), HRC rose 1.29pct to 3,465 yuan (USD 483), wire rod inched up 0.17pct to 3,453 yuan (USD 481), and stainless steel added 1.38pct to 13,225 yuan (USD 1,842) per ton.
1 USD / 7.18 yuan
CHINESE STEEL FUTURES
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Date: 8/07/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,453 |
0.17 |
0 |
| HRC | 3,465 |
1.29 |
1.07 |
| Rebar | 3,250 |
1.09 |
1.14 |
| Stainless Steel | 13,225 |
1.38 |
1.81 |
| Iron Ore | 796.5 |
0.82 |
0.82 |
| Coke | 1,681 |
1.97 |
1.64 |
| Coking Coal | 1,256 |
2.99 |
2.31 |
