Dalian iron ore futures extended their decline on Thursday, falling for the fifth consecutive session, as the outlook for iron ore demand remains weak despite a modest recovery in steel demand.
The improvement in steel demand is evident from the ongoing weekly drop in steel inventories at major Chinese warehouses. However, concerns persist over weak steel mill margins and rising port-side iron ore stockpiles, which continue to weigh on the demand outlook.
According to the China Iron & Steel Association (CISA), steel demand is expected to recover to some extent in September and October, which could support the steel market. However, CISA cautioned against prematurely restarting production, warning that any gains could be short-lived.
The most-traded iron ore contract on the Dalian Commodity Exchange fell 2.58pct to 678.5 yuan (USD 95.3) per ton. Dalian coke and coking coal futures also dropped, down 3.41pct and 3.7pct, respectively, to 1,815.5 yuan (USD 255) per ton and 1,238 yuan (USD 174) per ton.
On the Shanghai Futures Exchange, rebar futures declined by 1.41pct to 3,083 yuan (USD 433) per ton, and HRC futures fell 2.16pct to 3,126 yuan (USD 439) per ton. Wire rod futures edged up nearly 1pct to 3,354 yuan (USD 471) per ton, while stainless steel futures remained unchanged at 13,238 yuan (USD 1,861) 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 | 3,354 |
0.99 |
1.04 |
| HRC | 3,126 |
-2.16 |
-1.44 |
| Rebar | 3,083 |
-1.41 |
-0.84 |
| Stainless Steel | 13,480 |
0 |
0.22 |
| Iron Ore | 678.5 |
-2.58 |
-1.62 |
| Coke | 1,815.5 |
-3.41 |
-1.51 |
| Coking Coal | 1,238 |
-3.70 |
-1.49 |
