Iron ore futures increased on Wednesday, supported by cautious optimism over U.S.-China trade talks, although demand concerns persisted.
Markets looked ahead to the high-level meeting between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing, as investors assessed potential implications for trade relations and broader geopolitical tensions linked to the Middle East situation.
Despite growing concerns that Chinese steel production may be approaching peak levels, near-term steel output remained relatively high, continuing to support iron ore consumption.
In the physical market, Chinese steel traders said downstream steel demand remained stable, while buyers continued assessing the impact of recent steel price increases announced by major Chinese mills.
Market insiders also noted a weekly decline in iron ore shipments from major global miners, which provided some additional support to prices.
On the Dalian Commodity Exchange, the most-traded September iron ore contract increased by 0.31pct to 820 yuan (USD 120.8) per ton. Coking coal and coke futures declined by 2.35pct and 1.12pct to 1,244 yuan (USD 183) and 1,816 yuan (USD 267) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures declined by 0.43pct to 3,257 yuan (USD 480) per ton, while HRC futures fell by 0.14pct to 3,481 yuan (USD 513) per ton. Wire rod futures dropped by 0.73pct to 3,397 yuan (USD 500) per ton, while stainless steel futures edged slightly higher to 15,185 yuan (USD 2,236) per ton.
1 USD / 6.79 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,397.00 | ▼ -0.73 | ▲ 0.06 |
| Hot Rolled Coils | 3,481.00 | ▼ -0.14 | ▲ 0.29 |
| Rebar | 3,257.00 | ▼ -0.43 | ▲ 0.06 |
| Stainless Steel | 15,185.00 | ▲ 0.16 | ▲ 0.33 |
| Iron ore | 820.00 | ▲ 0.31 | ▲ 0.91 |
| Coke | 1,816.00 | ▼ -1.12 | ▲ 0.72 |
| Coking Coal | 1,244.00 | ▼ -2.35 | ▲ 0.24 |
