Iron ore futures edged higher on Friday, supported by rising steel production and expectations of seasonal demand improvement, although gains remained limited amid concerns over environmental-related output curbs ahead of major political meetings in China next week.
According to data from the China Iron and Steel Association (CISA), daily crude steel output among member mills averaged 2.03 mln tons per day during February 11-20, up 4.3pct from the previous ten-day period, though down 5.7pct YoY.
Market participants also expect the traditional seasonal pickup in steel demand in March to support iron ore consumption. Sentiment has been further underpinned by anticipation of policy signals from China’s major political gatherings in early March, when authorities are expected to outline priorities under the upcoming 15th Five-Year Plan.
However, traders remain cautious that temporary environmental curbs on steel production ahead of the political meetings could weigh on near-term iron ore demand. Higher iron ore inventories at major Chinese ports continue to act as an additional headwind.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 0.27pct to 750.5 yuan (USD 109.4) per ton. Coking coal and coke futures extended losses, falling 0.73pct and 1.03pct to 1,093.5 yuan (USD 159) and 1,635.5 yuan (USD 238) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures edged up to 3,067 yuan (USD 447) per ton, while HRC slipped 0.25pct to 3,215 yuan (USD 470). Wire rod futures inched higher to 3,350 yuan (USD 469), and stainless steel futures declined 0.53pct to 14,205 yuan (USD 2,071) per ton.
1 USD / 6.85 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (%) | Difference from Previous Morning Session (%) |
|---|---|---|---|
| Wire Rod | 3,350.00 | ▲ 0.03 | ▲ 0.12 |
| Hot Rolled Coils | 3,215.00 | ▼ -0.25 | ▼ -0.09 |
| Rebar | 3,067.00 | ▲ 0.03 | ▲ 0.13 |
| Stainless Steel | 14,205.00 | ▼ -0.53 | ▼ -0.42 |
| Iron Ore | 750.50 | ▲ 0.27 | ▲ 0.27 |
| Coke | 1,635.50 | ▼ -1.03 | ▼ -0.52 |
| Coking Coal | 1,093.50 | ▼ -0.73 | ▲ 0.32 |
