Iron ore futures rose on Wednesday as markets anticipated additional stimulus measures from Beijing, despite lingering demand concerns.
Market expectations are high for additional stimulus measures ahead of the annual China Economic Work Conference, scheduled for December 11-12, 2024, where top policymakers are expected to outline economic targets and stimulus plans for 2025. These plans take on added urgency as U.S. President-elect Donald Trump is likely to impose higher tariffs on Chinese goods.
However, the market remains cautious due to high port-side iron ore inventories and the potential for increased supply from major iron ore miners. Vale has projected iron ore production of 325-335 mln tons in 2025, compared to approximately 328 mln tons this year.
Steel demand is also softening with the onset of winter, a season traditionally associated with subdued activity. Reflecting this cautious sentiment, major steel producer Shagang has decided to keep its long steel product prices unchanged for early December sales.
On the Dalian Commodity Exchange, iron ore futures gained 0.43pct to settle at 812 yuan (USD 111.4) per ton. Conversely, coke and coking coal futures fell by 2.04pct to 1,828 yuan (USD 251) and 1,195 yuan (USD 164) per ton, respectively.
On the Shanghai Futures Exchange, trends were mixed. Rebar futures edged up 0.09pct to 3,342 yuan (USD 459) per ton. HRC futures slipped 0.23pct to 3,525 yuan (USD 484) per ton. Wire rod futures dropped 0.77pct to 3,627 yuan (USD 498) per ton. Stainless steel futures rose 0.23pct to 13,020 yuan (USD 1,787) per ton.
1 USD / 7.28 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,627 |
-0.77 |
-0.91 |
| HRC | 3,525 |
-0.23 |
-0.54 |
| Rebar | 3,342 |
0.09 |
-0.30 |
| Stainless Steel | 13,020 |
0.23 |
-0.35 |
| Iron Ore | 812 |
0.43 |
-0.18 |
| Coke | 1,828 |
-2.04 |
-1.67 |
| Coking Coal | 1,195 |
-2.85 |
-2.68 |
