Dalian iron ore futures extended their gains on Tuesday, driven by expectations of additional stimulus measures. Despite the traditional summer slowdown in construction activity leading to weaker steel demand and downward price pressure, iron ore futures continued to find support.
Major steel producer Shagang has reduced domestic prices for long steel products by 100 yuan (USD 14) per ton for the first ten days of July. However, the market remains optimistic due to the anticipated stimulus announcements at the upcoming third plenum, scheduled from July 15 to 18.
On the Dalian Commodity Exchange, iron ore futures for September delivery closed daytime trading with a 1.44pct gain, reaching 843 yuan (USD 115.9) per ton. Additionally, Dalian coke futures and coking coal futures increased by 1.6pct and 1.83pct, respectively, to 2,313.5 yuan (USD 318) per ton and 1,612 yuan (USD 222) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures rose by 0.37pct to 3,562 yuan (USD 490) per ton. HRC futures edged up by 0.19pct to 3,757 yuan (USD 517) per ton. Wire rod futures climbed by 0.29pct to 3,757 yuan (USD 517) per ton, and stainless steel futures increased by 0.53pct to 14,145 yuan (USD 1,946) per ton.
1 USD / 7.27 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,757 |
0.29 |
-0.08 |
| HRC | 3,757 |
0.19 |
-0.08 |
| Rebar | 3,562 |
0.37 |
0 |
| Stainless Steel | 14,145 |
0.53 |
0.07 |
| Iron Ore | 843 |
1.44 |
0.36 |
| Coke | 2,313.50 |
1.60 |
0.15 |
| Coking Coal | 1,612 |
1.83 |
0.56 |
