Iron ore futures tumbled on Tuesday, pressured by a bearish demand outlook driven by a contraction in manufacturing.
The official manufacturing PMI fell to a six-month low of 49.1, according to the National Bureau of Statistics, with some analysts citing weak demand due to extreme weather conditions in the country.
Iron ore prices are also facing downward pressure as higher port-side inventories coincide with surging imports from major miners.
Despite the bleak demand outlook for iron ore, some analysts expect a modest improvement in steel demand during the peak construction season, although any rebound in steel prices is likely to be limited due to ongoing challenges in the property sector.
The most-traded iron ore contract on the Dalian Commodity Exchange dropped by 4.74pct to 723.5 yuan (USD 101.7) per ton. Dalian coke and coking coal futures also extended their losses, declining by 2.24pct and 2.41pct, respectively, to 1,918 yuan (USD 270) per ton and 1,315 yuan (USD 185) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures fell by 3.14pct to 3,149 yuan (USD 443) per ton, and HRC futures decreased by 2.96pct to 3,214 yuan (USD 452) per ton. The most-traded wire rod futures, though less active, slipped by 1.63pct to 3,375 yuan (USD 475) per ton. Stainless steel futures also declined by 0.99pct to 13,530 yuan (USD 1,902) per ton.
1 USD / 7.11 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,375 |
-1.63 |
6.67 |
| HRC | 3,214 |
-2.96 |
-2.21 |
| Rebar | 3,149 |
-3.14 |
-2.35 |
| Stainless Steel | 13,530 |
-0.99 |
-0.18 |
| Iron Ore | 703.5 |
-4.74 |
-2.84 |
| Coke | 1,918 |
-2.24 |
-0.68 |
| Coking Coal | 1,315 |
-2.41 |
-0.95 |
