Iron ore futures declined on Friday as a cautious demand outlook continued to dampen market sentiment.
Slowing steel output growth, subdued post-holiday steel demand impacting mill profitability, and a bleak forecast for Chinese steel exports in the second half of the year are weighing on the iron ore market.
Adding to the complex market landscape, U.S. President Donald Trump suggested that the current 145pct tariffs on Chinese goods might be reduced, an indication of a potential thaw in U.S.-China trade tensions. However, analysts and traders remained wary ahead of the upcoming Sino-U.S. talks this weekend.
On the Dalian Commodity Exchange, the most-active September iron ore contract slipped 0.57pct to 696 yuan (USD 96.2) per ton. Coke and coking coal futures also declined, down 2.1pct and 1.79pct, closing at 1,446.5 yuan (USD 200) and 877.5 yuan (USD 121) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures dropped 1.63pct to 3,022 yuan (USD 418) per ton. HRC fell 1.34pct to 3,157 yuan (USD 437), wire rod slid 2.1pct to 3,364 yuan (USD 465), and stainless steel edged down 0.16pct to 12,720 yuan (USD 1,759) per ton.
1 USD / 7.23 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,364 |
-2.10 |
-2.26 |
| HRC | 3,157 |
-1.34 |
-1.08 |
| Rebar | 3,022 |
-1.63 |
-0.99 |
| Stainless Steel | 12,720 |
-0.16 |
0.12 |
| Iron Ore | 696 |
-0.57 |
0.36 |
| Coke | 1,446.5 |
-2.10 |
-2.18 |
| Coking Coal | 877.5 |
-1.79 |
-1.88 |