​China Pig Iron Market Update | Prices Hold Steady Amid Weak Demand and Tight Supply (Oct 31, 2025

Date: October 31, 2025

The domestic pig iron market in China remained stable today with a cautious sentiment prevailing across regions. Although raw material costs continue to offer some support, weaker futures prices and sluggish downstream demand have led most traders to adopt a wait-and-see attitude.

1. Macro Environment: Pollution Alerts and Industry’s “Anti-Involution” Initiative

Environmental controls have tightened across northern China.
Hebei’s Tangshan, Hengshui, Langfang, and Cangzhou cities activated heavy pollution alerts starting at 6 p.m. today, expected to last until around November 9. Tianjin also issued an orange alert, launching a Level II emergency response with strict emission reduction measures, temporarily affecting steel and coking production in some areas.

Meanwhile, the Yunnan Province Steel Industry Anti-Involution Seminar was held in Kunming this afternoon. Major steel producers and distributors emphasized that curbing “involution” — or unhealthy competition — is not the responsibility of a single enterprise but a long-term strategic goal for the entire industry to achieve sustainable, high-quality growth.

2. Futures Market: Black Series Under Pressure

China’s ferrous futures weakened across the board, dampening market confidence.
At market close:

• Iron ore fell by 14.5 yuan to 782.5 yuan/ton

• Coke declined by 21 yuan to 1,771.5 yuan/ton

• Coking coal dropped 11 yuan to 1,284.5 yuan/ton

• Rebar fell 30 yuan to 3,079 yuan/ton

• Hot-rolled coil slipped 20 yuan to 3,295 yuan/ton

The overall downturn in futures prices has reinforced a cautious mood in the spot market, leading to slower transactions.

3. Cost Support: Third Round of Coke Price Hikes Implemented

The third round of coke price increases took effect earlier this week. Although iron ore prices showed slight fluctuations, they remain at relatively high levels. As a result, raw material costs continue to provide firm support for pig iron producers, with some maintaining a strong pricing stance despite weaker demand.

4. Supply and Demand: Tight Supply Meets Weak Consumption

• Supply Side: Several blast furnaces remain under maintenance or suspension, keeping overall inventories low and supply pressure limited.

• Demand Side: Downstream foundries and steelmakers maintain cautious procurement, and acceptance of high-priced materials remains low. Market transactions are limited, with supply and demand in a temporary stalemate.

Given these dynamics, most traders prefer to maintain stable quotations while monitoring future market signals.

5. Market Outlook

With environmental restrictions tightening, raw material costs staying high, and downstream demand yet to recover, the Chinese pig iron market is expected to remain stable with a cautious tone in the short term.
Should environmental controls intensify or input costs rise further, prices may show minor upward adjustments, but the overall trend is likely to stay steady.