Iron ore futures were almost steady on Thursday, as weak steel demand balanced restocking activity by Chinese steel mills.
Seasonal slowing in steel demand during winter dampened market sentiment. High port inventories and declining steel production continued to challenge iron ore demand.
Despite these headwinds, restocking ahead of the Chinese New Year and optimism surrounding potential economic stimulus from Beijing provided some support. A Reuters report indicated Chinese authorities plan to issue USD 411 bln in special treasury bonds next year, boosting hopes for economic growth measures.
On the Dalian Commodity Exchange, iron ore futures slipped marginally by 0.06pct to 776.5 yuan (USD 106.3) per ton. Coke and coking coal futures dropped by 0.74pct and 1.08pct, closing at 1,805.5 yuan (USD 247) and 1,141 yuan (USD 156) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures were almost unchanged at 3,305 yuan (USD 453) per ton, while HRC futures rose slightly by 0.18pct to 3,428 yuan (USD 470) per ton. Wire rod futures gained 1.24pct to 3,601 yuan (USD 493) per ton, and stainless steel futures edged up 0.08pct to 13,010 yuan (USD 1,782) per ton.
1 USD / 7.3 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,601 |
1.24 |
1.19 |
| HRC | 3,428 |
0.18 |
0.09 |
| Rebar | 3,305 |
0.03 |
0.15 |
| Stainless Steel | 13,010 |
0.08 |
0.35 |
| Iron Ore | 776.5 |
-0.06 |
0.06 |
| Coke | 1,805.5 |
-0.74 |
-0.66 |
| Coking Coal | 1,141 |
-1.08 |
-1.05 |
