Iron ore futures gained ground on Thursday in post-New Year holiday trading, buoyed by expectations of steady near-term demand. Chinese steel mills are likely to accelerate restocking their iron ore inventories ahead of the Chinese New Year holidays, beginning on January 28, which is expected to lend short-term support to iron ore prices.
However, the longer-term demand outlook remains uncertain due to elevated port-side inventories and ongoing challenges in China’s troubled property sector, the largest consumer of steel. A seasonal slowdown in steel demand is another concern for the iron ore market. Reflecting weak market sentiment, major steel producer Shagang has cut domestic long steel prices by USD 14 per ton for the first ten days of January.
Market participants also anticipate Beijing to introduce additional stimulus measures this year, especially amid heightened concerns over a potential trade conflict with the U.S. under the incoming presidency of Donald Trump.
On the Dalian Commodity Exchange, iron ore futures rose 0.64pct to 782 yuan (USD 107.1) per ton. Coke and coking coal futures increased by 0.41pct and 1.47pct, reaching 1,825 yuan (USD 250) and 1,174 yuan (USD 161) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures edged down 0.18pct to 3,306 yuan (USD 453) per ton, while HRC futures remained nearly unchanged at 3,424 yuan (USD 469). Wire rod futures fell 0.22pct to 3,601 yuan (USD 493), and stainless steel futures dropped 1.55pct to 12,740 yuan (USD 1,745).
1 USD / 7.29 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,601 |
-0.22 |
1.42 |
| HRC | 3,424 |
0.03 |
0.18 |
| Rebar | 3,306 |
-0.18 |
-0.09 |
| Stainless Steel | 12,740 |
-1.55 |
-1.37 |
| Iron Ore | 782 |
0.64 |
0.38 |
| Coke | 1,825 |
0.41 |
0.71 |
| Coking Coal | 1,174 |
1.47 |
1.15 |
