Iron ore futures rose on Tuesday, supported by pre-holiday restocking by Chinese steel mills ahead of the Chinese New Year holiday, which begins on January 28.
Further support came from a decline in weekly iron ore shipments to China from major miners.
Market optimism was also bolstered by a Reuters report stating that Chinese authorities plan to issue approximately USD 411 bln in special treasury bonds next year, marking a record high, as part of efforts to stimulate the economy.
However, concerns linger over higher port-side iron ore inventories, declining steel production, and potential environmental restrictions on steel output, which continue to weigh on the outlook for iron ore demand.
On the Dalian Commodity Exchange, iron ore futures increased by 1.29 pct to 783 yuan (USD 107.2) per ton. Coke futures rose by 0.33 pct to 1,824.5 yuan (USD 250), while coking coal futures fell by 0.52 pct to 1,153 yuan (USD 158) per ton.
In the Shanghai Futures Exchange, rebar futures climbed 0.91 pct to 3,314 yuan (USD 454) per ton, while HRC futures edged up 0.53 pct to 3,431 yuan (USD 470) per ton. Wire rod futures slipped 0.42 pct to 3,531 yuan (USD 484) per ton, and stainless steel futures advanced by 0.54 pct to 13,030 yuan (USD 1,785) per ton.
1 USD / 7.29 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,531 |
-0.42 |
-0.03 |
| HRC | 3,431 |
0.53 |
0.38 |
| Rebar | 3,314 |
0.91 |
0.72 |
| Stainless Steel | 13,030 |
0.54 |
-0.04 |
| Iron Ore | 783 |
1.29 |
0.38 |
| Coke | 1,824.5 |
0.33 |
-0.03 |
| Coking Coal | 1,153 |
-0.52 |
-0.22 |
