Iron ore futures dropped on Friday due to weak steel output figures and slow steel demand, negatively impacting market sentiment.
Based on recent figures released by the China Iron and Steel Association (CISA), major steel producers recorded a slight decrease in daily crude steel output. Output among member steelmakers fell by 0.8pct compared to the preceding 10-day period, totaling around 2.18 mln tons from June 21 to June 30.
Iron ore futures had posted continuous gains earlier this week, driven by market optimism for more stimulus from a key government meeting scheduled for mid-July. However, a slowdown in steel demand, evidenced by the continuous rise in steel inventory at major warehouses, raised concerns about iron ore demand. Additionally, weak margins for steel mills and higher iron ore inventory at Chinese ports added further risk to the iron ore demand outlook.
On the Dalian Commodity Exchange, iron ore futures for September delivery decreased by 2.03pct to 845.5 yuan (USD 116.2) per ton. Dalian coke futures and coking coal futures also declined by 3.92pct and 3.8pct, respectively, to 2,253.5 yuan (USD 310) per ton and 1,557 yuan (USD 214) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures dropped by 1.74pct to 3,553 yuan (USD 489) per ton. HRC futures decreased by 1.21pct to 3,759 yuan (USD 517) per ton. Wire rod futures saw a decrease of 1.37pct to 3,750 yuan (USD 516) per ton. In contrast, stainless steel futures rose slightly by 0.1pct to 14,230 yuan (USD 1,957) 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 | 3,750 |
-1.37 |
-1.04 |
| HRC | 3,759 |
-1.21 |
-1.12 |
| Rebar | 3,553 |
-1.74 |
-1.77 |
| Stainless Steel | 14,230 |
0.07 |
0.39 |
| Iron Ore | 845.50 |
-2.03 |
-2.25 |
| Coke | 2,253.50 |
-3.92 |
-3.66 |
| Coking Coal | 1,557 |
-3.80 |
-3.79 |
