Iron ore futures rallied on Monday during pre-holiday trading, supported by firm near-term demand ahead of China’s week-long Chinese New Year holiday (January 28-February 4), with trading set to resume on February 5.
The iron ore market gained strength from rising steel production, further buoyed by U.S. President Trump’s softer stance on China, which temporarily eased concerns over escalating U.S.-China trade tensions.
However, elevated port-side iron ore inventories, despite a slight weekly decline, continue to pressure prices.
Economic concerns deepened with weaker-than-expected industrial data. China’s manufacturing Purchasing Managers’ Index (PMI) dropped to 49.1 in January, the lowest since August, signaling contraction. Steel industry PMI fell sharply by 4.2 points to 43.3, while the construction PMI dipped to 49.3, reflecting subdued activity ahead of the holidays, according to National Bureau of Statistics (NBS) data.
Industrial profits also painted a mixed picture. While profits fell 3.3pct YoY in 2024, marking a third consecutive annual decline, December profits posted an 11pct YoY gain.
Amid domestic economic challenges and a sluggish property sector, markets expect Beijing to intensify stimulus measures post-holiday to counter the downturn. The urgency for action is heightened as potential U.S. tariffs on Chinese exports could further weaken external demand.
On the Dalian Commodity Exchange, iron ore futures rose 1.06pct to 810.5 yuan (USD 111.8) per ton, while coke and coking coal futures increased by 2.23pct and 0.8pct, settling at 1,785 yuan (USD 246) and 1,135 yuan (USD 157) per ton, respectively.
In the Shanghai Futures Exchange, rebar futures climbed 0.86pct to 3,382 yuan (USD 467) per ton, HRC futures rose 0.87pct to 3,485 yuan (USD 481) per ton, wire rod futures increased 1.07pct to 3,600 yuan (USD 497) per ton, and stainless steel futures surged 2.34pct to 13,330 yuan (USD 1,840) per ton.
1 USD / 7.24 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,600 |
1.07 |
0.58 |
| HRC | 3,485 |
0.87 |
0.34 |
| Rebar | 3,382 |
0.86 |
0.15 |
| Stainless Steel | 13,330 |
2.34 |
2.18 |
| Iron Ore | 810.5 |
1.06 |
0.49 |
| Coke | 1,785 |
2.23 |
1.15 |
| Coking Coal | 1,135 |
0.80 |
0.35 |
