Iron ore futures declined on Friday as a weak demand outlook weighed on market sentiment. Maintenance shutdowns at several blast-furnace-based steel mills are expected to further reduce steel production, dampening iron ore demand. Seasonal factors also contribute to the bearish trend, with winter typically seeing lower steel demand and environmental restrictions on steel production adding to the challenges.
A near-term uptick in demand is possible as Chinese steel mills engage in pre-holiday restocking ahead of the Chinese New Year, which begins on January 28. However, the longer-term outlook remains negative due to high port-side iron ore inventories and slim margins for steelmakers. Data from the National Bureau of Statistics shows that profits among steelmakers plunged 83.7pct YoY to 7.86 bln yuan (USD 1.07 bln) during the first 11 months of the year.
On the Dalian Commodity Exchange, iron ore futures fell 2.63pct to 759.5 yuan (USD 104) per ton, recording a weekly loss of 1.81pct, the second consecutive weekly decline. Coke futures dropped 2.01pct to 1,780 yuan (USD 244) per ton, while coking coal futures slipped 1pct to 1,140 yuan (USD 156) per ton.
On the Shanghai Futures Exchange, rebar futures fell 1.27pct to 3,268 yuan (USD 448) per ton. HRC futures declined 0.96pct to 3,400 yuan (USD 466) per ton. Wire rod futures edged down 0.14pct to 3,580 yuan (USD 490) per ton, and stainless steel futures decreased 0.58pct to 12,935 yuan (USD 1,772) 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 | 3,580 |
-0.14 |
-0.59 |
| HRC | 3,400 |
-0.96 |
-0.82 |
| Rebar | 3,268 |
-1.27 |
-1.13 |
| Stainless Steel | 12,935 |
-0.58 |
-0.58 |
| Iron Ore | 759.5 |
-2.63 |
-2.24 |
| Coke | 1,780 |
-2.01 |
-1.43 |
| Coking Coal | 1,140 |
-1.00 |
-0.09 |
