Iron ore futures posted slight gains on Wednesday, as optimism over potential stimulus from Beijing helped offset steel demand concerns.
Confidence in additional fiscal stimulus grew after a Reuters report spurred price gains overnight. China is reportedly considering authorizing over 10 trillion yuan (USD 1.4 trillion) in additional debt issuance in the coming years to support its economy. Chinese President Xi Jinping also reiterated the goal to meet the annual economic targets, signaling urgency ahead of the National People’s Congress Standing Committee meeting in early November. This comes as Beijing rolls out new stimulus measures to reach its 5pct growth target for the year.
However, rising iron ore inventories at major Chinese ports and narrowing steel mill margins due to softening demand continue to pose challenges, particularly as winter typically slows construction activity.
On the Dalian Commodity Exchange, the most-traded iron ore contract rose 0.38pct to 785.5 yuan (USD 110) per ton. Coke futures dropped 0.27pct to 2,048 yuan (USD 287) per ton, while coking coal fell 1.01pct to 1,377.5 yuan (USD 193) per ton.
On the Shanghai Futures Exchange, rebar futures increased 0.23pct to 3,442 yuan (USD 482) per ton. HRC futures held steady at 3,588 yuan (USD 503) per ton, wire rod futures climbed 0.89pct to 3,726 yuan (USD 522) per ton, and stainless steel futures edged down 0.22pct to 13,645 yuan (USD 1,912) per ton.
Overall, steelmaking raw materials and steel futures posted gains from the previous morning session.
1 USD / 7.13 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,726 |
0.89 |
0.70 |
| HRC | 3,588 |
-0.06 |
0.53 |
| Rebar | 3,442 |
0.23 |
0.58 |
| Stainless Steel | 13,645 |
-0.22 |
0.18 |
| Iron Ore | 785.5 |
0.38 |
1.02 |
| Coke | 2,048.5 |
-0.27 |
1.10 |
| Coking Coal | 1,377.5 |
-1.01 |
0.83 |
