Trends in pig iron market on 25 June 2025

Today, the domestic pig-iron market stabilized with a wait-and-see tone.

Macroeconomic Aspect: As of June 24th, the fund availability ratio of sample construction sites was 59.11%, up 0.06 percentage points week-on-week. Among them, non-real estate projects stood at 61.02% (+0.05% week-on-week), and real estate projects at 49.59% (+0.08% week-on-week). The ratio continued its slight rebound, bolstering steel demand. Xinhua News Agency reported that Lan Fo'an, Minister of Finance, delivered a report on the 2024 central final accounts to the 16th meeting of the 14th NPC Standing Committee on the 24th. The report showed that fiscal reforms and development made new progress in 2024, with the central final accounts generally sound. Going forward, more proactive fiscal policies will be fully leveraged, introducing incremental reserve policies timely based on market changes to stabilize employment, enterprises, the market, and expectations, consolidating the foundation for economic and social stability and boosting market confidence.

Futures Aspect: At close, black-series futures showed mixed performance. Iron ore fell by 3 yuan/ton to 702.5 yuan/ton; coke rose by 20 yuan/ton to 1,387.5 yuan/ton; coking coal up 6 yuan/ton to 804.5 yuan/ton; rebar down 10 yuan/ton to 2,976 yuan/ton; hot-rolled coil down 8 yuan/ton to 3,098 yuan/ton.

Cost Aspect: Sustained coke price declines have significantly squeezed coking enterprises' profit margins. Some independent cokemakers have proactively curtailed production, while major producers in key areas maintain normal output, leading to a slight supply tightening. Steel mills retain inelastic coke procurement. Coupled with weak iron ore oscillation, pig-iron costs face short-term pressure.

Supply-demand Aspect: The black market continued its weak oscillation, fueling deeper wait-and-see sentiment. Spot transactions showed apparently stable prices but implicit declines. Pig-iron plants maintained steady production. Benefiting from price advantages over scrap steel, some foundries slightly increased purchases, but overall demand remained weak. Short-term pig-iron prices are expected to stay weakly stable.

Overall, the domestic pig-iron market is forecast to remain weakly stable tomorrow.