Vale, a leading global iron ore producer, released its production and sales report for the second quarter of 2026 on July 21; the output of iron ore—a core raw material for steelmaking—exceeded market expectations, providing a significant boost to the raw material supply side of the global steel industry.
Analysis and Commentary
Iron Ore
Vale, a leading global iron ore producer, reported second-quarter production figures that exceeded market expectations, significantly reinforcing the outlook for looser iron ore supplies. On July 21, 2026, the benchmark iron ore futures contract (2609) on the Dalian Commodity Exchange closed at 749 RMB per dry metric ton, down 10.5 RMB from the previous trading day, with open interest decreasing by 1,201 lots; the increase in supply exerted significant downward pressure on prices, acting as a clear bearish factor for both spot and futures markets.
Rebar
Ample iron ore supply is driving down the cost of steelmaking raw materials, thereby weakening the cost support for rebar. On July 21, 2026, the closing price of the dominant rebar contract (2610) on the Shanghai Futures Exchange was 3,095 RMB/ton—down 20 RMB/ton from the previous trading day—exerting slight downward pressure on rebar prices.
Scrap Steel
Increased iron ore supply has lowered the cost of producing molten iron, leading to reduced demand from steel mills for scrap steel as a substitute; this weakening demand-side support exerts slight downward pressure on scrap steel prices.
Coiled Rebar
Ample iron ore supply has weakened the overall cost support for steel products; as a type of construction steel, coiled rebar prices are facing slight downward pressure in line with cost trends, creating a bearish outlook.
Wire Rod
Ample raw material supply has diminished the overall cost support for steel; wire rod prices are facing slight downward pressure due to this cost factor, exerting a mildly bearish influence on prices.
SunSirs has been continuously tracking price data for over 200 commodities for nearly 20 years, please contact support@sunsirs.com for subscription.
