Iron ore futures declined on Friday as market sentiment remained cautious over the demand outlook, while improving steel production helped limit losses.
Iron ore futures came under pressure this week amid higher inventories at major Chinese ports and rising supply. Market participants also pointed to reported progress in negotiations between China’s state-backed iron ore buyer and BHP, which could further increase supply availability.
Despite these pressures, improving Chinese steel output provided some support, although margin constraints at mills may limit further production growth.
Losses were also capped by supportive macroeconomic data from China, including firmer factory-gate and consumer price indicators.
In addition, major producer Baosteel raised flat steel prices by 100 yuan (USD 15) a ton for May deliveries, which may help ease margin pressure and support broader market sentiment.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 0.33pct to 753.5 yuan (USD 110.3) per ton, posting a weekly decline of 5.75pct compared with last Friday’s morning session.
Coking coal and coke futures declined 4.22pct and 2.21pct to 1,056 yuan (USD 155) and 1,640 yuan (USD 240) per ton, respectively.
On the Shanghai Futures Exchange, the most-traded rebar contract eased 0.23pct to 3,099 yuan (USD 454) per ton, while HRC edged down to 3,273 yuan (USD 479). Wire rod fell 0.7pct to 3,248 yuan (USD 476), while stainless steel rose 1.01pct to 14,465 yuan (USD 2,118) 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 | 3,248.00 | ▼ -0.70 | ▼ -0.52 |
| Hot Rolled Coils | 3,273.00 | ▼ -0.12 | ▲ 0.09 |
| Rebar | 3,099.00 | ▼ -0.23 | ▲ 0.10 |
| Stainless Steel | 14,465.00 | ▲ 1.01 | ▲ 1.21 |
| Iron ore | 753.50 | ▼ -0.33 | ▲ 0.46 |
| Coke | 1,640.00 | ▼ -2.21 | ▼ -1.31 |
| Coking Coal | 1,056.00 | ▼ -4.22 | ▼ -1.99 |
