Chinese iron ore futures hit a new high and have soared by around 7% since March. The Dalian Commodity Exchange iron ore prices went up as much as 6.5% since March. Iron ore prices were pushed up by strong steel margins and would be expected to hike even higher in the future.

The coke futures increased by 2.9% since September, 2017. Coking coal grew by 3.6% since June 19th. Chinese government's anti-pollution policies forced Chinese mills to cut steel production. As a result, the supply was tight and it also supported the high price with profits.

Shandong province would cut the production capacity of crude steel by 3.55 million tons and that of pig iron by 600,000 tons by end of 2018.