Iron ore futures extended losses on Wednesday, as the lack of additional stimulus measures dampened market sentiment. The sharp rally seen before the holidays cooled off after a press briefing by the National Development and Reform Commission (NDRC), China’s top economic planner, which did not deliver the significant new stimulus anticipated by the market.
Despite the disappointing performance in iron ore futures, analysts suggest that rising steel output may limit further declines in the short term.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell by 3.6pct to 777.5 yuan (USD 110.1) per ton. Coke and coking coal futures also saw declines of 4.44pct and 4.78pct, respectively, closing at 2,128.5 yuan (USD 301) and 1,465.5 yuan (USD 208) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures dropped by 3.29pct to 3,466 yuan (USD 491) per ton, while HRC futures fell 3.56pct to 3,571 yuan (USD 506) per ton. Wire rod futures declined by 2.72pct to 3,720 yuan (USD 527) per ton, and stainless steel futures slipped by 1.17pct to 13,970 yuan (USD 1,979) per ton.
1 USD / 7.06 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,720 |
-2.72 |
-5.11 |
| HRC | 3,571 |
-3.56 |
-0.84 |
| Rebar | 3,466 |
-3.29 |
-0.58 |
| Stainless Steel | 13,970 |
-1.17 |
-0.04 |
| Iron Ore | 777.5 |
-3.60 |
-0.77 |
| Coke | 2,128.5 |
-4.44 |
-0.68 |
| Coking Coal | 1,465.5 |
-4.78 |
-1.09 |
