Iron ore futures rose on Monday, buoyed by restocking activities as steel mills prepared for potential winter disruptions and the upcoming February holiday. This proactive inventory replenishment provided some support to iron ore prices, further supported by a slight decline in weekly iron ore arrivals.
Despite these gains, the market faces persistent challenges. High port inventories and weakening steel demand continue to weigh on the key steelmaking raw material. Analysts warn that without additional policy measures from China, the outlook for iron ore prices remains bleak. BMI analysts predict further price pressures unless significant demand-driven support emerges in the coming months.
Data from the China Iron and Steel Association (CISA) reflects the mixed sentiment in the steel market. In mid-November, daily crude steel output among CISA member mills dipped 0.8pct from early November levels, averaging 2.08 mln tons per day. However, on YoY basis, the daily output of these mills was 1.1pct higher for the same period.
On the Dalian Commodity Exchange, iron ore futures gained 0.84pct, reaching 781.5 yuan (USD 107.8) per ton. In contrast, coke and coking coal futures saw declines of 1.04pct and 2.38pct, settling at 1,911 yuan (USD 264) per ton and 1,273 yuan (USD 176) per ton, respectively.
Steel futures showed mixed trends on the Shanghai Futures Exchange. Rebar futures edged down 0.21pct to 3,297 yuan (USD 455) per ton, and HRC futures fell 0.32pct to 3,463 yuan (USD 478) per ton. Meanwhile, wire rod prices rose by 0.31pct to 3,598 yuan (USD 497) per ton, and stainless steel futures slipped marginally by 0.04pct to 13,225 yuan (USD 1,826) per ton.
1 USD / 7.24 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,598 |
0.31 |
0.83 |
| HRC | 3,463 |
-0.32 |
0.43 |
| Rebar | 3,297 |
-0.21 |
0.61 |
| Stainless Steel | 13,225 |
-0.04 |
0.08 |
| Iron Ore | 781.5 |
0.84 |
1.60 |
| Coke | 1,911 |
-1.04 |
0.31 |
| Coking Coal | 1,273 |
-2.38 |
-0.86 |
