Iron ore futures fell on Monday as weakening steel production, driven by slowing demand, dampened market sentiment.
According to the China Iron and Steel Association (CISA), average daily crude steel output among its member mills declined by 0.3pct between May 11 and May 20 compared to the first ten days of the month, reaching 2.2 mln tons per day. This also marked a 0.5pct decrease compared to the same period last year.
Although steel exports from China were strong in early 2025, analysts expect this momentum to fade in the second half of the year as global protectionist measures intensify. Goldman Sachs forecasts a 3pct decline in Chinese steel exports for 2025, with a more significant drop of one-third expected in 2026.
Adding further pressure, the ongoing struggles in China’s property sector, a major consumer of steel, continue to cast a shadow over the demand outlook for iron ore.
The most-traded September iron ore contract on the Dalian Commodity Exchange closed 2.21pct lower at 706.5 yuan (USD 98.2) per ton. Coke futures dropped 1.72pct to 1,375 yuan (USD 191) per ton, while coking coal slipped 1.96pct to 799.5 yuan (USD 111) per ton.
On the Shanghai Futures Exchange, rebar futures declined by 1.67pct to 3,004 yuan (USD 418) per ton. HRC futures fell 2.03pct to 3,138 yuan (USD 436) per ton. Wire rod futures slid 2.58pct to 3,253 yuan (USD 452) per ton, while stainless steel futures edged down slightly by 0.04pct to 12,875 yuan (USD 1,790) per ton.
1 USD / 7.19 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,253 |
-2.58 |
-2.49 |
| HRC | 3,138 |
-2.03 |
-1.63 |
| Rebar | 3,004 |
-1.67 |
-1.0 |
| Stainless Steel | 12,875 |
-0.04 |
0 |
| Iron Ore | 706.5 |
-2.21 |
-1.63 |
| Coke | 1,375 |
-1.72 |
-0.58 |
| Coking Coal | 799.5 |
-1.96 |
-0.25 |