Iron ore futures saw their fifth consecutive session of gains on Thursday, buoyed by robust short-term demand and ongoing expectations of further stimulus measures.
Chinese steel producers are maintaining production levels despite a slowdown in steel demand. Analysts suggest that expectations of improved demand and relatively lower raw material costs are enabling producers to avoid significant production cuts.
The iron ore market is also buoyed by the persistent expectation of more stimulus measures from China during the upcoming key government meeting scheduled for July 15-18.
On the Dalian Commodity Exchange, iron ore futures for September delivery closed daytime trading with a 1.77pct gain, reaching 864.5 yuan (USD 118.8) per ton. Dalian coke futures and coking coal futures also increased by 0.37pct and 0.15pct, respectively, to 2,336 yuan (USD 321) per ton and 1,616 yuan (USD 222) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures rose by 0.86pct to 3,616 yuan (USD 497) per ton. HRC futures increased by 0.58pct to 3,801 yuan (USD 523) per ton. Wire rod futures saw a slight increase of 0.13pct to 3,789 yuan (USD 521) per ton, and stainless steel futures increased by 0.25pct to 14,175 yuan (USD 1,949) 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 | 3,789 |
0.13 |
-0.79 |
| HRC | 3,801 |
0.58 |
-0.21 |
| Rebar | 3,616 |
0.86 |
-0.08 |
| Stainless Steel | 14,175 |
0.25 |
-0.11 |
| Iron Ore | 864.50 |
1.77 |
0.06 |
| Coke | 2,336 |
0.37 |
-0.98 |
| Coking Coal | 1,616 |
0.15 |
-0.96 |
