Iron ore futures fell on Monday, weighed down by weak fundamentals that continued to dampen market sentiment. The declining steel output due to weak demand and higher port-side iron ore inventories have kept the demand outlook bearish.
Some analysts suggest that pre-holiday stocking ahead of the Chinese New Year might offer temporary support, but concerns over steel demand are likely to limit any gains.
Additionally, potential stimulus measures from Beijing could provide some support to the iron ore market. Last week, officials from the National Development and Reform Commission (NDRC) announced plans to increase funding through special treasury bonds to finance large-scale equipment upgrades and consumer goods trade-ins. However, experts warn that these measures may not fully offset the demand deficit in the steel sector caused by a slump in the property market.
On the Dalian Commodity Exchange, iron ore futures fell 2.21pct to 751.5 yuan (USD 102.6) per ton. Coke futures dropped 2.1pct to 1,745.5 yuan (USD 238) per ton, while coking coal futures rose slightly by 0.3pct to 1,156 yuan (USD 158) per ton.
On the Shanghai Futures Exchange, rebar futures declined 0.85pct to 3,252 yuan (USD 444) per ton, and HRC futures fell 0.97pct to 3,358 yuan (USD 459) per ton. Wire rod futures edged down by 0.03pct to 3,564 yuan (USD 487) per ton, while stainless steel futures increased by 0.51pct to 12,860 yuan (USD 1,756) per ton.
1 USD / 7.32 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,564 |
-0.03 |
0.11 |
| HRC | 3,358 |
-0.97 |
-0.57 |
| Rebar | 3,252 |
-0.85 |
-0.62 |
| Stainless Steel | 12,860 |
0.51 |
1.13 |
| Iron Ore | 751.5 |
-2.21 |
-1.66 |
| Coke | 1,745.5 |
-2.10 |
-0.86 |
| Coking Coal | 1,156 |
0.30 |
0.65 |
