Iron ore futures plunged on Wednesday following the post-holiday resumption of trading, driven by cautious market sentiment surrounding demand prospects. Chinese commodity markets were closed earlier in the week due to the Mid-Autumn Festival holiday.
Higher port-side iron ore inventories, combined with increased supply from major miners and weak margins for steel mills, continued to weigh heavily on iron ore prices. Goldman Sachs lowered its fourth-quarter 2024 iron ore price forecast by USD 15, to USD 85 per ton, citing concerns over market oversupply.
Analysts also highlighted weak economic fundamentals, exacerbated by China’s struggling property sector and rising protectionist measures against Chinese steel, which are expected to limit any significant price recovery in the long term.
The market is now awaiting developments in China’s steel demand and the U.S. Federal Reserve’s upcoming decision on interest rates, which could offer a positive stimulus if rates are cut.
On the Dalian Commodity Exchange, the most-traded iron ore contract dropped by 4.12pct to 675 yuan (USD 95.1) per ton. Coke and coking coal futures also fell, by 0.83pct and 1.29pct, respectively, to 1,857 yuan (USD 262) and 1,262 yuan (USD 178) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures declined by 1.44pct to 3,150 yuan (USD 444) per ton, HRC futures fell 1.72pct to 3,196 yuan (USD 450) per ton, and wire rod futures slipped by 0.82pct to 3,487 yuan (USD 491) per ton. Stainless steel futures edged up slightly, gaining 0.11pct to 13,370 yuan (USD 1,884) per ton.
1 USD / 7.09 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,487 |
-0.82 |
-0.52 |
| HRC | 3,196 |
-1.72 |
-1.53 |
| Rebar | 3,150 |
-1.44 |
-1.27 |
| Stainless Steel | 13,370 |
0.11 |
0.15 |
| Iron Ore | 675 |
-4.12 |
-2.81 |
| Coke | 1,857 |
-0.83 |
-0.48 |
| Coking Coal | 1,262 |
-1.29 |
-0.55 |
