Iron Ore Prices Climb on Demand Optimism
Iron ore prices showed moderate growth in early September 2025 after an unstable August. Futures on the Dalian Commodity Exchange increased to $110.44/t, while Singapore Exchange contracts rose to $104.95/t. Initial price drops followed China’s steel production restrictions ahead of the September 3 military parade, especially in Hebei and Henan provinces, where pig iron output fell by up to 50%. Blast furnace shutdowns caused ore consumption to decline, pushing prices down to $107/t in Dalian and $101.3/t in Singapore.
Demand Recovery Supports Iron Ore Price Stability
Following the parade, steel mills gradually resumed production, boosting pig iron output and iron ore prices. Despite weak steel consumption data and rising inventories, market optimism grew. Macroeconomic factors like potential US Federal Reserve rate cuts and rumors of new Chinese steel production restrictions fueled positive sentiment. Prices stabilized between $105 and $110/t, though high port stocks and sluggish construction sector demand maintain market caution.
SuperMetalPrice Commentary:
Iron ore prices are balancing between recovery hopes and supply risks. Seasonal demand rebound and resumed blast furnace activity support prices around $105/t. However, growing stockpiles and potential Chinese production limits create volatility risks. Market watchers should monitor macroeconomic cues and government policies closely to anticipate price trends.
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