China’s iron ore futures recorded a decline on Thursday due to concerns over demand. This was primarily triggered by environmental output restrictions and reports indicating that major steel mills were instructed to limit their production to the same level as the previous year, 2022.
Additionally, the iron ore futures were affected by predictions of higher iron ore supply from major mining companies. Moreover, the lack of specific details regarding stimulus measures further weighed down on the iron ore market. Although the Chinese government expressed its intent to implement measures to boost economic growth during the week, the absence of concrete plans added to the market uncertainty.
Consequently, the Dalian iron ore futures for the September contract dropped by 1.91 pct, reaching 848.5 yuan (USD 118.6) per ton. Similarly, coke and coking coal futures experienced declines of 0.71 pct and 1.58 pct, settling at 2,305.5 yuan (USD 322) per ton and 1,494 yuan (USD 209) per ton, respectively.
In contrast, steel futures were supported by the implementation of output curbs. Rebar futures on the Shanghai Futures Exchange saw a slight increase of 0.18 pct, reaching 3,861 yuan (USD 540) per ton, while HRC futures surged by 1 pct, reaching 4,080 yuan (USD 570) per ton. Wire rod futures also experienced a 0.37 pct increase, settling at 4,296 yuan (USD 601) per ton. However, stainless steel futures faced a decline of 2.19 pct, reaching 15,215 yuan (USD 2,127) per ton.
1 USD / 7.15 yuan
