Iron ore futures rose on Monday, driven by renewed expectations of additional fiscal stimulus from Beijing, following weak economic data that lifted market sentiment.
Data from China’s National Bureau of Statistics (NBS) showed the consumer price index (CPI) increased by 0.4pct YoY in September, down from a 0.6pct rise in August. Meanwhile, the producer price index (PPI) dropped 2.8pct YoY, compared to a 1.8pct decline in the previous month. These sluggish indicators fueled hopes for more stimulus to revive demand and support economic activity.
While China’s Ministry of Finance did not announce a broad-based fiscal stimulus package during a highly anticipated briefing on Saturday, it indicated that more stimulus could be on the way. However, the extent of any forthcoming measures, and whether they will meet market expectations or target consumption and real estate sectors, remains unclear.
In addition, rising steel demand during October’s traditional peak season improved profit margins for steel mills, encouraging higher production rates and further boosting market optimism for iron ore.
On the Dalian Commodity Exchange, the most-traded iron ore contract rose 1.97pct to 800.5 yuan (USD 113.2) per ton. Coke and coking coal futures also gained, up 2.35pct to 2,176.5 yuan (USD 308) per ton and 1.83pct to 1,498.5 yuan (USD 212) per ton, respectively.
Over on the Shanghai Futures Exchange, rebar futures climbed 1.36pct to 3,502 yuan (USD 496) per ton, HRC futures increased by 1.37pct to 3,634 yuan (USD 514) per ton, wire rod futures gained 0.96pct to 3,787 yuan (USD 536) per ton, and stainless steel futures edged up 0.32pct to 14,045 yuan (USD 1,987) 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 | 3,787 |
0.96 |
0.42 |
| HRC | 3,634 |
1.37 |
0.96 |
| Rebar | 3,502 |
1.36 |
0.97 |
| Stainless Steel | 14,045 |
0.32 |
0.39 |
| Iron Ore | 800.5 |
1.97 |
1.44 |
| Coke | 2,176.5 |
2.35 |
1.72 |
| Coking Coal | 1,498.5 |
1.83 |
0.97 |
