Iron ore futures closed higher on Thursday, supported by a weaker U.S. dollar, though gains were constrained by falling China lump ore premiums—an indicator of softening demand for the steelmaking raw material. The most actively traded January iron ore contract on the Dalian Commodity Exchange (DCE) edged up 0.44% to 799.5 yuan per metric ton ($112.92, based on $1=7.0804 Chinese yuan). The benchmark December iron ore contract on the Singapore Exchange rose 0.29% to $106.85 per ton as of 07:03 GMT.

China’s seaborne iron ore lump premiums relative to 62% Fe fines plummeted 42.2% over two months ending November 25, hitting their lowest level since late May 2024, according to Chinese consultancy Mysteel. This decline stemmed from waning demand for lump ore among loss-making steelmakers, Mysteel noted.

India’s finished steel imports in the first seven months of the current financial year fell 34.1% year-on-year, while China’s...

Galaxy Futures, a Chinese broker, pointed out that the decline in coking coal and iron ore prices has accelerated due to increased coal supply and sustained inventory accumulation at coal mines. Pig iron production is expected to decline further this week, adding pressure on raw materials, the broker added.

A weaker U.S. dollar index (standing at 99.431 after a 0.28% drop the previous day) boosted dollar-denominated iron ore assets, as it makes them more affordable for holders of other currencies. Other steelmaking ingredients on the DCE showed mixed performance: coking coal fell 0.19%, while coke rose 0.03%. Steel benchmarks on the Shanghai Futures Exchange were mostly down—rebar dipped 0.13%, hot-rolled coil eased0.27%, stainless steel lost0.28%—though wire rod gained0.78%.