Iron ore futures rose on Thursday, driven by pre-holiday restocking activity, which lifted market sentiment. Steel inventories at major Chinese warehouses continued to decline ahead of the Mid-Autumn Festival holidays next week.
In addition, Chinese authorities are expected to ramp up policy measures to boost economic growth. According to Bloomberg, China may cut interest rates on over USD 5 trillion in outstanding mortgages as early as this month, aiming to reduce borrowing costs and stimulate consumption.
However, analysts remain cautious about the recent recovery in the futures market due to weak steel mill margins and ongoing challenges in the property sector. The longer-term outlook for iron ore remains uncertain, with higher port-side inventories and pressure on steel mills to limit production to avoid oversupply. This comes as steel exports face rising protectionist measures globally.
On the Dalian Commodity Exchange, the most-traded iron ore contract increased by 3.97pct to 707 yuan (USD 99.3) per ton. Coke and coking coal futures also rose, up 4.87pct and 5.04pct respectively, to 1,863.5 yuan (USD 262) and 1,282.5 yuan (USD 180) per ton.
On the Shanghai Futures Exchange, rebar futures climbed 3.11pct to 3,185 yuan (USD 447) per ton, while HRC futures gained 3.44pct to 3,244 yuan (USD 456) per ton. Wire rod futures rose 1.87pct to 3,494 yuan (USD 491) per ton, and stainless steel futures increased by 1.75pct to 13,380 yuan (USD 1,880) 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 | 3,494 |
1.87 |
1.06 |
| HRC | 3,244 |
3.44 |
1.73 |
| Rebar | 3,185 |
3.11 |
1.51 |
| Stainless Steel | 13,380 |
1.75 |
0.86 |
| Iron Ore | 707 |
3.97 |
1.84 |
| Coke | 1,863.5 |
4.87 |
1.72 |
| Coking Coal | 1,282.5 |
5.04 |
1.60 |
