Iron ore futures rose on Wednesday, supported by expectations of improved near-term demand. Market analysts anticipate that Chinese steel mills may increase production in the coming weeks, boosting iron ore consumption as mills replenish raw material inventories.
On the macro front, fresh policy measures from Shanghai also lifted sentiment. The city has relaxed home-buying restrictions for non-residents in an effort to stabilize the struggling property sector and restore market confidence. Investors are also awaiting signals from China’s upcoming Two Sessions in early March, when authorities are expected to outline priorities under the 15th Five-Year Plan, setting the policy direction for the next five years.
However, gains remain capped by higher iron ore inventories at Chinese ports. Media reports indicate that steel mills near Beijing have been instructed to curb output during the Two Sessions, which could temporarily weigh on iron ore demand, although tighter supply may lend support to steel prices.
Reflecting the cautious outlook, major Chinese steelmaker Shagang announced that it would keep domestic long steel prices unchanged for late February sales.
On the Dalian Commodity Exchange, the most-traded May iron ore contract increased 1.42pct to 752.5 yuan (USD 109.5) per ton. Coking coal and coke futures rose 2.32pct to 1,126 yuan (USD 164) and 1,674 yuan (USD 244) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures gained 1.72pct to 3,076 yuan (USD 448) per ton, while HRC rose 1.19pct to 3,236 yuan (USD 471). Wire rod climbed 0.96pct to 3,362 yuan (USD 489), and stainless steel futures advanced 1.24pct to 14,245 yuan (USD 2,074) per ton.
1 USD / 6.86 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (%) | Difference from Previous Morning Session (%) |
|---|---|---|---|
| Wire Rod | 3,362.00 | ▲ 0.96 | ▲ 1.04 |
| Hot Rolled Coils | 3,236.00 | ▲ 1.19 | ▲ 1.27 |
| Rebar | 3,076.00 | ▲ 1.72 | ▲ 1.59 |
| Stainless Steel | 14,245.00 | ▲ 1.24 | ▲ 1.12 |
| Iron Ore | 752.50 | ▲ 1.42 | ▲ 1.59 |
| Coke | 1,674.00 | ▲ 2.32 | ▲ 2.36 |
| Coking Coal | 1,126.00 | ▲ 2.32 | ▲ 2.18 |
