Iron ore futures extended losses on Wednesday as weakening fundamentals and lower forecasts for China’s economic recovery weighed on market sentiment.
Shrinking margins for steel mills may lead to reduced output, with demand during the traditional peak season falling short of expectations, despite Beijing’s stimulus measures aimed at boosting economic growth.
The latest International Monetary Fund (IMF) report further dampened sentiment by cutting China’s growth forecast for 2024 to 4.8pct, down 0.2 percentage points from its July projection, with growth in 2025 expected at 4.5pct.
On the Dalian Commodity Exchange, the most-traded iron ore contract dropped 1.9pct to 746 yuan (USD 104.7) per ton. Other steelmaking raw materials followed suit, with coke futures falling 1.29pct to 1,956 yuan (USD 275) per ton and coking coal futures down 1.59pct to 1,328.5 yuan (USD 186) per ton.
On the Shanghai Futures Exchange, rebar futures decreased by 0.48pct to 3,316 yuan (USD 466) per ton, while HRC futures fell 0.32pct to 3,476 yuan (USD 488) per ton. Wire rod futures declined 1.21pct to 3,522 yuan (USD 494) per ton, and stainless steel futures dropped 1.28pct to 13,505 yuan (USD 1,896) per ton.
1 USD / 7.12 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,522 |
-1.21 |
-1.42 |
| HRC | 3,476 |
-0.32 |
-0.49 |
| Rebar | 3,316 |
-0.48 |
-1.00 |
| Stainless Steel | 13,505 |
-1.28 |
-0.93 |
| Iron Ore | 746 |
-1.91 |
-2.14 |
| Coke | 1,956 |
-1.29 |
-1.15 |
| Coking Coal | 1,328.5 |
-1.59 |
-0.90 |
