Steel and raw material futures retreat on demand uncertainty

Iron ore futures fell on Tuesday as demand outlook weakened amid potential production curbs and slowing steel consumption.

Market sources said several steel mills in Tangshan have been instructed by authorities to cut sintering output between August 25 and September 3, 2025, ahead of a military parade in Beijing.

Rising steel inventories at major Chinese warehouses, partly due to heavy rains in several regions and growing portside iron ore stocks, also weighed on sentiment.

Previously, higher output from blast furnace producers had supported the iron ore market, thanks to healthy steel margins. However, demand is now softening, raising fears of oversupply.

Longer-term risks also persist, including global protectionist measures against Chinese steel and ongoing weakness in the property sector, once a key driver of steel demand.

On the Dalian Commodity Exchange, the most-traded January iron ore contract fell 0.64pct to 771 yuan (USD 107.3) per ton. Coking coal futures dropped 1.89pct to 1,194.5 yuan (USD 166), while coke slipped 0.96pct to 1,708.5 yuan (USD 238).

On the Shanghai Futures Exchange, rebar futures fell 1.48pct to 3,126 yuan (USD 435) per ton, HRC edged down 0.38pct to 3,416 yuan (USD 476), wire rod dropped 0.71pct to 3,368 yuan (USD 469), and stainless steel declined 1.07pct to 12,885 yuan (USD 1,794) per ton.

1 USD / 7.18 yuan