Iron ore futures remained under pressure on Wednesday as the market stayed cautious over the near-term demand outlook.
Iron ore futures found some support from expectations that higher steel production levels and the traditional seasonal improvement in steel demand in March could lend support to iron ore consumption. Sentiment was also underpinned by anticipation of policy signals from China’s major political meetings in early March, when authorities are expected to outline priorities under the upcoming 15th Five-Year Plan, setting the policy direction for the next five years.
However, higher port-side iron ore inventories and the risk of environmentally driven steel production curbs continued to weigh on market sentiment.
Chinese steel traders said conditions in the physical steel market remain largely unchanged, with downstream demand yet to show a meaningful pickup and spot prices mostly stable. In the export market, a stronger yuan has kept steel offers firm, with some exporters reportedly rushing to cover earlier bookings to limit losses from further currency appreciation.
On the Dalian Commodity Exchange, the most-traded May iron ore contract ended flat at 748.5 yuan (USD 109.4) per ton, though it was down 0.53pct from the previous morning’s close. Coking coal and coke futures fell 2.46pct and 0.93pct to 1,090 yuan (USD 159) and 1,644 yuan (USD 240) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures edged up 0.2pct to 3,063 yuan (USD 448) per ton, while HRC inched higher to 3,218 yuan (USD 470). Wire rod slipped 0.27pct to 3,346 yuan (USD 489), while stainless steel futures rose 0.35pct to 14,265 yuan (USD 2,085) per ton.
1 USD / 6.84 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (%) | Difference from Previous Morning Session (%) |
|---|---|---|---|
| Wire Rod | 3,346.00 | ▼ -0.27 | ▼ -0.48 |
| Hot Rolled Coils | 3,218.00 | ▲ 0.09 | ▼ -0.56 |
| Rebar | 3,063.00 | ▲ 0.20 | ▼ -0.42 |
| Stainless Steel | 14,265.00 | ▲ 0.35 | ▲ 0.14 |
| Iron Ore | 748.50 | 0.00 | ▼ -0.53 |
| Coke | 1,644.00 | ▼ -0.93 | ▼ -1.82 |
| Coking Coal | 1,090.00 | ▼ -2.46 | ▼ -3.30 |
