Iron ore futures edge higher amid policy optimism

Iron ore futures rose on Wednesday as markets drew optimism from key policy meetings in Beijing, though underlying demand fundamentals remained soft.

China’s Communist Party began a major gathering on Monday to outline economic and policy priorities for the next five-year plan starting in 2026. While the full framework will be released next year, investors expect hints this week, with Beijing maintaining its target of around 5pct GDP growth for 2025.

Sentiment also improved following reports that U.S. President Donald Trump plans to meet Chinese President Xi Jinping at a regional summit in South Korea later this month, signaling a possible easing in U.S.-China trade tensions.

Despite the improved outlook, weak steel demand continues to weigh on mill profitability and limit raw material demand.

On the Dalian Commodity Exchange, the most-traded January iron ore contract rose 0.65pct to 774 yuan (USD 108.6) per ton. Coking coal gained 1.43pct to 1,209.5 yuan (USD 170), while coke increased 1.06pct to 1,709.5 yuan (USD 240) per ton.

On the Shanghai Futures Exchange, rebar futures climbed 0.59pct to 3,068 yuan (USD 431), HRC rose 0.81pct to 3,247 yuan (USD 456), wire rod edged up 0.09pct to 3,342 yuan (USD 469), and stainless steel added 0.36pct to 12,710 yuan (USD 1,784) per ton.

1 USD / 7.12 yuan