Iron ore futures extended their losses for a fourth consecutive session on Wednesday, as market sentiment remained pessimistic.
The bearish outlook was driven by higher port-side iron ore inventories and weak steel mill margins. While some analysts anticipate a potential price rebound in September due to an expected increase in steel output, any recovery is likely to be limited.
Steel demand is showing signs of improvement, evidenced by a continuous weekly decline in steel inventories at major Chinese warehouses, suggesting that near-term fundamentals could strengthen during the peak construction season in September. However, the long-term demand outlook remains uncertain due to ongoing challenges in the property sector and rising protectionist measures against Chinese steel in key global markets.
The most-traded iron ore contract on the Dalian Commodity Exchange fell by 3.09pct to 689.5 yuan (USD 96.8) per ton. Dalian coke and coking coal futures also declined, dropping by 4.66pct and 5.21pct, respectively, to 1,843 yuan (USD 259) per ton and 1,256.5 yuan (USD 176) per ton.
On the Shanghai Futures Exchange, rebar futures decreased by 2.72pct to 3,109 yuan (USD 437) per ton, and HRC futures fell by 2.61pct to 3,171 yuan (USD 445) per ton. In contrast, wire rod futures rose by 1.41pct to 3,319 yuan (USD 466) per ton, while stainless steel futures declined by 0.99pct to 13,450 yuan (USD 1,888) per ton.
1 USD / 7.12 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,319 |
1.41 |
-1.69 |
| HRC | 3,171 |
-2.61 |
-1.36 |
| Rebar | 3,109 |
-2.72 |
-1.29 |
| Stainless Steel | 13,450 |
-0.99 |
-0.59 |
| Iron Ore | 689.5 |
-3.09 |
-2.03 |
| Coke | 1,843 |
-4.66 |
-4.07 |
| Coking Coal | 1,256.5 |
-5.21 |
-4.66 |
