Iron ore futures declined on Thursday as weak demand fundamentals outweighed Beijing’s new tax cuts for the property sector.
Rising iron ore shipments to China are increasing port inventories, while steel mills face shrinking margins amid slow demand, further darkening the outlook for iron ore.
Demand is also expected to weaken during winter due to reduced steel production and environmental restrictions imposed by Chinese authorities.
Although Beijing introduced tax incentives on home and land transactions to support its struggling property sector, a major steel consumer, these measures provided limited market relief.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell by 1.37pct to 756 yuan (USD 104.6) per ton. Coke and coking coal futures also dropped, by 1.31pct and 1.59pct, to 1,916.5 yuan (USD 265) and 1,269 yuan (USD 176) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures slid 0.93pct to 3,313 yuan (USD 459) per ton, while HRC futures were down nearly 1pct to 3,484 yuan (USD 482) per ton. Wire rod futures declined 0.28pct to 3,574 yuan (USD 495) per ton, and stainless steel futures fell 0.78pct to 13,300 yuan (USD 1,841) per ton.
1 USD / 7.22 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,574 |
-0.28 |
-0.39 |
| HRC | 3,484 |
-0.99 |
-0.83 |
| Rebar | 3,313 |
-0.93 |
-0.72 |
| Stainless Steel | 13,300 |
-0.78 |
-0.71 |
| Iron Ore | 756 |
-1.37 |
-0.86 |
| Coke | 1,916.5 |
-1.31 |
-1.02 |
| Coking Coal | 1,269 |
-1.59 |
-1.38 |
