Iron ore futures fell on Friday as reduced steel production and sluggish steel demand dampened market sentiment.
Higher port-side iron ore inventories and persistent challenges in the property sector, a key steel consumer, continued to act as major headwinds.
Analysts remain optimistic about near-term restocking activity ahead of the Chinese New Year holidays starting January 28, which could provide some support to iron ore prices.
Additionally, Beijing plans to increase funding through special treasury bonds this year to finance large-scale equipment upgrades and consumer goods trade-ins. However, experts caution that these measures are unlikely to fully compensate for the steel demand deficit from the property sector.
On the Dalian Commodity Exchange, iron ore futures dropped 2.18pct to 764 yuan (USD 104.6) per ton. Coke and coking coal futures also declined, falling 3.35pct to 1,760.5 yuan (USD 241) and 2.17pct to 1,148.5 yuan (USD 157) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures decreased by 1.18pct to 3,272 yuan (USD 448) per ton, while HRC futures slipped 1.32pct to 3,377 yuan (USD 463). Wire rod futures fell 1.44pct to 3,560 yuan (USD 488), and stainless steel futures edged down 0.66pct to 12,715 yuan (USD 1,742) 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 | 3,560 |
-1.55 |
-1.15 |
| HRC | 3,377 |
-1.32 |
-1.39 |
| Rebar | 3,272 |
-1.18 |
-1.04 |
| Stainless Steel | 12,715 |
-0.66 |
-0.20 |
| Iron Ore | 764 |
-2.18 |
-2.36 |
| Coke | 1,760.5 |
-3.35 |
-3.66 |
| Coking Coal | 1,148.5 |
-2.17 |
-2.22 |
