Iron ore futures inched higher on Tuesday, supported by expectations of improved demand amid lower shipments from major suppliers and the anticipated recovery in Chinese steel output.
Market sentiment improved following a weekly decline in iron ore shipments from key exporters, while steel production is expected to rebound after the conclusion of China’s annual parliamentary meetings. The seasonal pickup in construction activity during the spring period also supported demand expectations.
On the macro front, tensions in the Middle East remain unresolved. Higher oil prices have pushed up energy and freight costs, raising the cost of imported iron ore and providing some support to prices.
However, gains remained limited as iron ore inventories at major Chinese ports remained elevated, while falling oil prices later weighed on the broader commodity complex.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 0.26pct to 784 yuan (USD 114) per ton. Coking coal and coke futures declined 3.86pct and 4.49pct to 1,121.5 yuan (USD 163) per ton and 1,680.5 yuan (USD 245) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures fell 0.42pct to 3,104 yuan (USD 452) per ton, while HRC futures edged down to 3,256 yuan (USD 474) per ton. Wire rod futures declined 1.91pct to 3,342 yuan (USD 486) per ton, while stainless steel futures increased 0.82pct to 14,225 yuan (USD 2,070) per ton.
1 USD / 6.87 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,342.00 | ▼ -1.91 | ▼ -1.20 |
| Hot Rolled Coils | 3,256.00 | ▼ -0.18 | ▼ -0.43 |
| Rebar | 3,104.00 | ▼ -0.42 | ▼ -0.48 |
| Stainless Steel | 14,225.00 | ▲ 0.82 | ▲ 0.84 |
| Iron ore | 784.00 | ▲ 0.26 | ▼ -0.06 |
| Coke | 1,680.50 | ▼ -4.49 | ▼ -3.54 |
| Coking Coal | 1,121.50 | ▼ -3.86 | ▼ -4.15 |
