Steelmaking raw materials and steel futures tumbled on Thursday after the latest stimulus measures targeting China’s struggling property sector failed to meet market expectations.
Beijing announced plans to nearly double the loan quota for unfinished residential projects to USD 562 bln, as stated by Housing and Urban-Rural Development Minister Ni Hong during a press briefing. However, he largely reiterated previous government steps, leading to volatile market reactions due to a lack of new spending details.
Rising output from major iron ore producers and growing port-side iron ore inventories in China further pressured the market, raising concerns about oversupply.
On the Dalian Commodity Exchange, the most-traded iron ore contract dropped nearly 6pct to 746 yuan (USD 104.7) per ton. Coke futures plummeted 7.74pct to 1,966 yuan (USD 276) per ton, and coking coal futures slid 8pct to 1,340 yuan (USD 188) per ton.
On the Shanghai Futures Exchange, rebar futures fell 5pct to 3,300 yuan (USD 464) per ton, while HRC futures dropped 4.87pct to 3,436 yuan (USD 483) per ton. Wire rod futures were down 4.41pct to 3,602 yuan (USD 506) per ton, and stainless steel futures decreased 1.75pct to 13,780 yuan (USD 1,936) 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 | 3,602 |
-4.41 |
-4.78 |
| HRC | 3,436 |
-4.87 |
-4.39 |
| Rebar | 3,300 |
-5.01 |
-4.45 |
| Stainless Steel | 13,780 |
-1.75 |
-1.81 |
| Iron Ore | 746 |
-5.99 |
-4.89 |
| Coke | 1,966 |
-7.74 |
-6.89 |
| Coking Coal | 1,340 |
-8.00 |
-6.87 |
