20251212 Futures

Most ferrous metal commodities closed higher in overnight trading, with the main coking coal contract rising 1.67%, while coke, rebar, and hot-rolled coil saw narrower gains. Yesterday's meeting of the Leading Group for the Drafting of the 15th Five-Year Plan Outline, along with news of an earthquake in Lingqiu County, Datong City, Shanxi Province, provided some support to the market. The main coking coal contract rose by over 3% at one point, indicating improved market expectations for the macroeconomy. Rebar and hot-rolled coil reached new weekly highs. However, iron ore futures weakened due to reports that a long-term agreement with a mining company had slightly lowered the price compared to the Platts index, resulting in a narrow decline in the main iron ore contract. Overall, the rebound sentiment in steel prices remains, with rebar slightly stronger than hot-rolled coil. Rebar prices may continue to move towards the 3150 level.