Iron ore futures declined on Wednesday as the market grew cautious due to rising iron ore supplies from major miners and uncertainty in demand.
Both Rio Tinto and Vale reported higher production and shipments in Q3, and are expected to increase annual output this year, which is likely to boost supply and dampen market sentiment, especially as iron ore inventories at Chinese ports remain elevated. China’s iron ore imports iron ore imports rose nearly 3pct YoY in September.
Recent policy measures from Beijing had boosted commodity markets, but the absence of additional stimulus has cooled optimism, with the market returning its focus to fundamentals. This has pressured both steelmaking raw materials and steel futures markets.
Steel prices in physical markets have dropped this week after sharp gains in previous weeks, slowing sales reflected by weekly increase in steel inventories at major Chinese warehouses.
On the Dalian Commodity Exchange, the most-traded iron ore contract dropped 1.88pct to 782.5 yuan (USD 109.9) per ton. Coke and coking coal futures also declined, falling 2.89pct to 2,101.5 yuan (USD 295) per ton and 3.54pct to 1,432 yuan (USD 201) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures decreased 1.15pct to 3,447 yuan (USD 484) per ton, HRC futures dropped 0.97pct to 3,587 yuan (USD 504) per ton. Wire rod futures edged down 0.24pct to 3,774 yuan (USD 530) per ton, while stainless steel futures rose 0.36pct to 14,030 yuan (USD 1,972) 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 | 3,774 |
-0.24 |
-0.03 |
| HRC | 3,587 |
-0.97 |
-0.45 |
| Rebar | 3,447 |
-1.15 |
-0.58 |
| Stainless Steel | 14,030 |
0.36 |
0.82 |
| Iron Ore | 782.5 |
-1.88 |
-1.15 |
| Coke | 2,101.5 |
-2.89 |
-2.26 |
| Coking Coal | 1,432 |
-3.54 |
-2.72 |
