Iron ore futures moved higher on Wednesday following the holiday break, supported by firm near-term demand, although longer-term concerns persist.
Chinese steel mills continued restocking activity amid expectations of improved steel demand. Market participants also pointed to tighter availability of steelmaking raw materials linked to Middle East tensions, which could constrain production in some regions and support Chinese steel exports, as reflected in stronger semi-finished exports in recent months. Spot steel prices also increased in line with futures.
The rally was further supported by speculative buying, while higher input costs driven by geopolitical developments continued to provide upward pressure on prices.
However, high inventories at major Chinese ports and rising global supply remain key headwinds for iron ore in the longer term.
Concerns also persist that rising raw material prices could squeeze mill margins, potentially impacting steel output and, in turn, iron ore demand, unless finished steel prices increase accordingly.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 2.84pct to 816 yuan (USD 119.7) per ton. Coking coal and coke futures increased by 2.18pct and 2.04pct to 1,313.5 yuan (USD 193) and 1,879.5 yuan (USD 276) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures rose 1.87pct to 3,264 yuan (USD 479) per ton, while HRC increased 2.34pct to 3,493 yuan (USD 513) per ton. Wire rod gained 5.26pct to 3,380 yuan (USD 496) per ton, and stainless steel rose 1.94pct to 15,780 yuan (USD 2,317) per ton.
1 USD / 6.81 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,380.00 | ▲ 5.26 | ▲ 1.24 |
| Hot Rolled Coils | 3,493.00 | ▲ 2.34 | ▲ 1.95 |
| Rebar | 3,264.00 | ▲ 1.87 | ▲ 1.53 |
| Stainless Steel | 15,780.00 | ▲ 1.94 | ▲ 2.19 |
| Iron ore | 816.00 | ▲ 2.84 | ▲ 2.45 |
| Coke | 1,879.50 | ▲ 2.04 | ▲ 2.05 |
| Coking Coal | 1,313.50 | ▲ 2.18 | ▲ 2.02 |