Iron ore futures declined on Thursday, as lingering concerns over weak demand overshadowed the positive sentiment sparked by encouraging developments in U.S.-China trade talks.
U.S. President Trump commented favorably on a recent trade agreement, which aims to maintain a delicate truce in the U.S.-China trade conflict. This followed news that negotiators from both sides had agreed on a framework addressing tariff rates, which had lifted iron ore prices in the previous session.
Despite this optimism, worries about demand continued to weigh on the market. Steel production is reportedly slowing as the industry enters a seasonally weaker period during the summer, further dampening demand for iron ore.
The China Iron and Steel Association (CISA) recently projected a 4pct drop in domestic steel production in 2025. This is attributed to a structural shift away from infrastructure-driven growth and persistent issues in the property sector, which is expected to reduce construction-related steel demand.
Additionally, the outlook for Chinese steel exports remains bearish. Protectionist measures from several major steel-importing countries have curbed demand for Chinese steel products, likely reducing future iron ore consumption.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell by 0.21pct to 704 yuan (USD 97.9) per ton. Coke and coking coal futures also declined, down 1.77pct and 2.79pct to 1,328.5 yuan (USD 185) and 766.5 yuan (USD 107) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures slipped 0.7pct to 2,968 yuan (USD 413), while HRC futures dropped 0.87pct to 3,080 yuan (USD 428). Wire rod futures also declined by 0.75pct to 3,287 yuan (USD 457). In contrast, stainless steel futures edged up 0.48pct to 12,585 yuan (USD 1,751) per ton.
1 USD / 7.18 yuan
CHINESE STEEL FUTURES
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Date: 6/12/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,287 |
-0.75 |
-0.61 |
| HRC | 3,080 |
-0.87 |
-0.91 |
| Rebar | 2,968 |
-0.70 |
-0.77 |
| Stainless Steel | 12,585 |
0.48 |
-0.12 |
| Iron Ore | 704 |
-0.21 |
-0.43 |
| Coke | 1,328.5 |
-1.77 |
-2.07 |
| Coking Coal | 766.5 |
-2.79 |
2.22 |
