China Iron Ore & Coking Coal Trading – Feb 25, 2026
Iron ore and coking coal prices continued their upward trajectory on February 25, 2026, according to reports from the Chinese futures market. The FerroTimes report, finalized at 3:00 PM local time, indicates sustained momentum in the raw material markets crucial to steel production.
The price increases come as the global steel industry navigates a complex landscape of fluctuating demand and rising input costs. Earlier this year, data indicated a 19% increase in iron ore prices, prompting steelmakers to consider price adjustments, though these efforts are complicated by sluggish demand in key sectors, as reported in January 2024.
Industry analysts note a historical trend where rising raw material costs can be advantageous for steel companies, as they are often able to pass these costs onto consumers. A 2022 analysis highlighted that steel manufacturers can effectively transfer price increases related to raw materials, mitigating the impact on their profit margins. But, the current situation is nuanced by broader economic conditions.
Further contributing to the price pressures, the cost of coking coal has too risen, partly due to concerns about potential supply disruptions from cyclones in Australia. This adds another layer of complexity for steel producers already grappling with elevated iron ore prices. The Korean steel industry, in particular, is facing challenges in absorbing these increased costs without impacting profitability, as evidenced by reports from the Korea Iron & Steel Association.
The Chinese market, a key driver of global steel demand, saw a slight increase in the average price of hot-rolled steel plate to 4089 yuan per ton during the first week of February, a rise of 11 yuan from the previous week. This suggests some degree of price transmission is occurring, but the extent to which steelmakers can fully offset rising raw material costs remains uncertain.
Analysts at Yu Jin Investment & Securities, as reported by Steel Daily, suggest that the high prices for iron ore and coking coal will likely persist throughout 2026. The report highlights that domestic Korean blast furnace companies have struggled to transfer raw material price increases to finished product prices, leading to diminished profitability.