Iron ore futures extended losses on Wednesday, pressured by rising supply and an uncertain demand outlook.
A temporary ceasefire between the US and Iran, including the reopening of the Strait of Hormuz, has reduced the risk premium previously built into commodity markets. Crude oil prices fell below USD 100 per barrel following the announcement. Lower energy costs typically translate into reduced shipping and production costs, removing part of the cost support for iron ore prices.
Rising shipments from major suppliers, along with high port inventories in China, added further pressure on the market.
Chinese steel production has shown improvement, but buying sentiment remains cautious. Market participants said restocking activity is limited and largely focused on meeting immediate demand.
On the Dalian Commodity Exchange, the most-traded May iron ore contract fell 1.44pct to 789 yuan (USD 115.5) per ton. Coking coal and coke futures rose 0.99pct and 1.05pct to 1,120.5 yuan (USD 164) and 1,688 yuan (USD 247) per ton, respectively.
On the Shanghai Futures Exchange, the most-traded rebar contract eased 0.19pct to 3,114 yuan (USD 456) per ton, while HRC edged up to 3,282 yuan (USD 481). Wire rod declined 1.03pct to 3,274 yuan (USD 480), and stainless steel increased 0.67pct to 14,310 yuan (USD 2,096) per ton.
1 USD / 6.82 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,274.00 | ▼ -1.03 | ▼ -0.92 |
| Hot Rolled Coils | 3,282.00 | ▲ 0.06 | ▲ 0.21 |
| Rebar | 3,114.00 | ▼ -0.19 | ▼ -0.03 |
| Stainless Steel | 14,310.00 | ▲ 0.67 | ▲ 1.05 |
| Iron ore | 789.00 | ▼ -1.44 | ▼ -1.08 |
| Coke | 1,688.00 | ▲ 1.05 | ▲ 1.54 |
| Coking Coal | 1,120.50 | ▲ 0.99 | ▲ 1.07 |
