Iron ore futures recovered on Thursday as concerns over steel production curbs eased, though demand worries lingered.
Chinese authorities have instructed several mills in Tangshan to cut sintering output between August 25 and September 3, 2025, ahead of a military parade in Beijing. Analysts note that these restrictions are relatively mild and unlikely to significantly affect iron ore consumption. Moreover, strong steel mill margins are expected to limit any reduction in steel production.
Still, weakening demand remains a key concern. Steel inventories at major Chinese warehouses continue to rise, with heavy rains and extreme summer heat dampening downstream activity. If steel demand stays sluggish, higher production levels could create oversupply, pressuring mill margins and, in turn, iron ore consumption.
On the Dalian Commodity Exchange, the most-traded January iron ore contract rose 0.98pct to 772.5 yuan (USD 107.5) per ton. Coking coal fell 1.5pct to 1,147 yuan (USD 160), while coke slipped 0.95pct to 1,664 yuan (USD 232).
On the Shanghai Futures Exchange, rebar futures were flat at 3,121 yuan (USD 435) per ton. HRC futures declined 0.44pct to 3,375 yuan (USD 470), wire rod slipped 0.15pct to 3,355 yuan (USD 467), and stainless steel fell 0.27pct to 12,795 yuan (USD 1,782) a ton.
1 USD / 7.18 yuan
CHINESE STEEL FUTURES
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Date: 8/21/2025 |
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| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,355 |
-0.15 |
-0.69 |
| HRC | 3,375 |
-0.44 |
-0.80 |
| Rebar | 3,121 |
-0.03 |
-0.35 |
| Stainless Steel | 12,795 |
-0.27 |
-0.20 |
| Iron Ore | 772.5 |
0.98 |
0.45 |
| Coke | 1,664 |
-0.95 |
-0.84 |
| Coking Coal | 1,147 |
-1.50 |
-1.35 |
