Iron ore futures jumped on Monday after Rio Tinto suspended work at its Simandou project in Guinea following a fatal incident involving a contractor employee, raising concerns of delays to the mine’s production start.
Rio Tinto holds a significant stake in the SimFer venture at the site. Simfer is a joint venture between Rio Tinto, the Government of Guinea, and Chalco Iron Ore Holdings (CIOH) that manages the northern section (Blocks 3 and 4) of the Simandou iron ore project in Guinea.
Market sentiment was further lifted by Shanghai’s easing of property restrictions, including waivers on property taxes for some first-time buyers and relaxed suburban purchase limits, following similar steps in Beijing. Iron ore also drew support from higher steel output, as mills continue to benefit from healthy margins.
However, risks remain. Rising steel inventories at major Chinese warehouses raise concerns about oversupply, which could pressure prices and erode mill profitability. In addition, Tangshan mills have been ordered to curb sintering output from August 25 to September 3 ahead of a Beijing military parade, though analysts expect limited impact on ore demand.
Further uncertainty stems from growing protectionist measures on Chinese steel exports, which could weigh on iron ore. So far, strong exports have offset weak domestic demand.
On the Dalian Commodity Exchange, the most-traded January iron ore contract rose 2.27pct to 787 yuan (USD 109.7) per ton. Coking coal surged 6.48pct to 1,215.5 yuan (USD 170), while coke futures climbed 4.36pct to 1,736 yuan (USD 242) per ton.
On the Shanghai Futures Exchange, rebar futures gained 0.71pct to 3,138 yuan (USD 438), HRC futures rose 0.92pct to 3,389 yuan (USD 473), wire rod edged up 0.65pct to 3,382 yuan (USD 472), and stainless steel increased 0.98pct to 12,880 yuan (USD 1,797) per ton.
1 USD / 7.16 yuan
CHINESE STEEL FUTURES
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Date: 8/25/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,382 |
0.65 |
0.30 |
| HRC | 3,389 |
0.92 |
0.83 |
| Rebar | 3,138 |
0.71 |
0.61 |
| Stainless Steel | 12,880 |
0.98 |
1.01 |
| Iron Ore | 787 |
2.27 |
2.16 |
| Coke | 1,736 |
4.36 |
3.31 |
| Coking Coal | 1,215.5 |
6.48 |
4.40 |
