Iron ore futures continued their downward trend on Tuesday, weighed down by persistent concerns over demand. The market faced headwinds from higher port-side inventories and weak steel demand. Additionally, the absence of new stimulus measures from Beijing further dampened market sentiment.
Analysts suggest that pre-holiday stocking ahead of the Chinese New Year might provide temporary support, but ongoing concerns about steel demand are likely to cap any potential gains.
On the Dalian Commodity Exchange, iron ore futures declined 1.38pct to 750 yuan (USD 102.4) per ton. Coke and coking coal futures dropped 2.02pct and 2.21pct, settling at 1,722.5 yuan (USD 235) per ton and 1,128 yuan (USD 154) per ton, respectively.
Over at the Shanghai Futures Exchange, rebar and HRC futures both fell 0.83pct, closing at 3,239 yuan (USD 442) per ton and 3,343 yuan (USD 456) per ton. Wire rod futures edged up 0.25pct to 3,572 yuan (USD 482) per ton, while stainless steel futures rose 0.23pct to 12,905 yuan (USD 1,762) per ton.
1 USD / 7.32 yuan
