Iron ore futures recovered on Friday, supported by improved production figures, though concerns over steel demand persist.
Daily crude steel output among China Iron & Steel Association (CISA) member mills for mid-October rose 1.1pct from the previous ten days and 1.6pct YoY, averaging 2.7 mln tons per day.
Despite this, China’s steel sector continues to face challenges, such as supply-demand imbalances, increasing international trade protectionism, and elevated raw material costs, according to CISA. The association also highlighted a decline in domestic steel consumption for both August and September, adding pressure to the delicate supply-demand balance. Rising protectionist measures pose additional risks for Chinese steel exports, CISA warned.
Steel inventory at major Chinese warehouses continues to decline weekly, though at a slower rate, signaling waning demand. The outlook remains weak as the winter season, which typically dampens steel consumption, approaches.
On the Dalian Commodity Exchange, the most-traded iron ore contract closed the morning session up 2.81pct at 769.5 yuan (USD 108) per ton, marking a weekly gain of 0.92pct. Coke and coking coal futures also saw gains, with coke rising 2.45pct to 1,990 yuan (USD 280) per ton and coking coal up 2.15pct to 1,355 yuan (USD 190) per ton.
In the Shanghai Futures Exchange, rebar futures gained 1.93pct to 3,376 yuan (USD 474) per ton, HRC futures increased by 2.16pct to 3,540 yuan (USD 497) per ton, and wire rod futures rose by 1.08pct to 3,568 yuan (USD 501) per ton. Stainless steel futures advanced by 1.07pct to 13,675 yuan (USD 1,921) 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 | 3,568 |
1.08 |
0.62 |
| HRC | 3,540 |
2.16 |
1.61 |
| Rebar | 3,376 |
1.93 |
1.36 |
| Stainless Steel | 13,805 |
0.91 |
1.20 |
| Iron Ore | 769.5 |
2.81 |
1.88 |
| Coke | 1,990 |
2.45 |
1.46 |
| Coking Coal | 1,355 |
2.15 |
1.33 |
