Iron ore futures surged on Friday, driven by expectations of increased steel production and strong domestic demand.
Seasonal demand continues to rise during the peak construction season in March, as reflected by declining finished steel inventories in major Chinese warehouses. Restocking has also accelerated, with mills ramping up output following Beijing’s annual parliamentary meeting.
Commodity markets received further support after Beijing signaled potential stimulus measures. The People’s Bank of China announced plans to introduce additional monetary tools, including possible interest rate cuts and reductions in the banks’ reserve requirement ratio, to stimulate economic growth.
However, gains were capped by growing protectionist measures against Chinese steel exports and ongoing trade tensions with the U.S. and other major partners. Additionally, speculation over Beijing’s plans to cut crude steel production capacity weighed on market sentiment.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 2.32pct to 794 yuan (USD 109.6) per ton. The iron ore contract also recorded a 2.58pct weekly gain. Coke and coking coal futures gained 0.03pct and 0.69pct, settling at 1,642.5 yuan (USD 227) and 1,088 yuan (USD 150) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures climbed 0.77pct to 3,267 yuan (USD 451) per ton, while HRC futures rose 1.53pct to 3,443 yuan (USD 476) per ton. Wire rod futures increased 0.78pct to 3,471 yuan (USD 479) per ton, and stainless steel futures advanced 0.41pct to 13,615 yuan (USD 1,880) 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 | 3,471 |
0.78 |
0.37 |
| HRC | 3,443 |
1.53 |
0.87 |
| Rebar | 3,267 |
0.77 |
0.34 |
| Stainless Steel | 13,615 |
0.41 |
0.22 |
| Iron Ore | 794 |
2.32 |
1.76 |
| Coke | 1,642.5 |
0.03 |
-0.76 |
| Coking Coal | 1,088 |
0.69 |
-0.37 |