Iron ore futures extended their losses on Thursday, weighed down by a bearish demand outlook and declining steel production figures that dampened market sentiment.
Crude steel production in China’s top ten steelmaking regions totaled 664.64 mln tons from January to November, down 2.22pct YoY, according to the National Bureau of Statistics (NBS). Production is expected to decline further in December as several mills have scheduled maintenance due to weak steel prices. Additionally, environmental-related restrictions during winter could exacerbate the slowdown.
Higher iron ore inventories at major Chinese ports and the potential seasonal slowdown in steel demand during the winter are adding to the negative outlook for iron ore demand.
Pressure on futures markets also mounted after the U.S. Federal Reserve signaled a slower pace of interest rate cuts next year.
On the Dalian Commodity Exchange, iron ore futures dropped 1.08pct to 778.5 yuan (USD 106.8) per ton. Coke and coking coal futures also fell, losing 0.9pct and 3.65pct to close at 1,754.5 yuan (USD 241) and 1,147.5 yuan (USD 157) per ton, respectively.
In the Shanghai Futures Exchange, rebar futures declined 1.5pct to 3,287 yuan (USD 451) per ton, and HRC futures fell 1.55pct to 3,419 yuan (USD 469) per ton. Wire rod prices rose slightly by 0.14pct to 3,576 yuan (USD 491) per ton, while stainless steel futures decreased by 0.92pct to 12,865 yuan (USD 1,766) 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 | 3,576 |
0.14 |
0.20 |
| HRC | 3,419 |
-1.55 |
-0.91 |
| Rebar | 3,287 |
-1.05 |
-0.76 |
| Stainless Steel | 12,865 |
-0.92 |
-0.35 |
| Iron Ore | 778.5 |
-1.08 |
0 |
| Coke | 1,754.5 |
-0.90 |
-0.14 |
| Coking Coal | 1,147.5 |
-3.65 |
-2.31 |
