China Pig Iron Market Trend July 25, 2025

Today, China's pig iron market operates steadily with a slightly strong bias, and pig iron prices in some regions have increased by 30-50 yuan/ton.

In terms of macroeconomics: The China-EU Leaders' Meeting reached an important consensus. For example, both sides attach great importance to China-EU relations, agree to adhere to and continuously deepen the partnership, maintain strategic communication, enhance mutual understanding and trust, and strive to usher in a brighter and better next 50 years for China-EU relations. China and the EU will continue to give play to the leading role of high-level exchanges, strengthen strategic communication, and continuously enhance the stability, constructiveness, reciprocity, and globality of China-EU relations. In addition, as expectations of "anti-involution" continue to heat up, coking coal has hit the daily limit for four consecutive days, pushing the market's bullish sentiment to a periodic high.

In terms of futures: As of the close, the main varieties in the black series were mainly up. Iron ore fell by 9 points, closing at 802.5; coke rose by 41 points, closing at 1763; coking coal rose by 93 points, closing at 1259; rebar rose by 76 points, closing at 3356; hot-rolled coil rose by 68 points, closing at 3507.

In terms of costs: Coke prices remain stable for the time being, and the third round of coke price increases has been fully implemented. Major steel mills in Hebei Province, after bidding and pricing, will increase the price of wet coke by 50 yuan/ton and dry coke by 55 yuan/ton starting from July 25. Iron ore fluctuates at a high level, providing strong cost support for pig iron.

In terms of supply and demand: Futures of the black series fluctuate and tend to be strong, coupled with the amplified expectations of coke price increases, merchants have a strong willingness to maintain prices, and the price center of pig iron continues to move upward. Iron mills mostly maintain low or negative inventory, with production mainly based on scheduled orders, so the pressure is limited; downstream phased restocking has ended, and the acceptance of high-priced resources has decreased, leading to a slowdown in market transactions. In the short term, under the game between cost support and cautious demand, pig iron prices may continue to operate steadily with a slightly strong bias.

Overall, it is expected that the pig iron market will continue to operate steadily with a slightly strong bias next week.