Iron ore futures edged lower on Tuesday, pressured by rising supply expectations, while steady steel production limited the downside.
Market sentiment weakened after reports that China Mineral Resources Group (CMRG) has allowed some domestic mills to purchase iron ore from BHP following a prolonged dispute. The development is seen as adding supply in a market where portside inventories are already near record highs. Higher iron ore imports, which rose 11.5pct YoY in March, also weighed on prices.
Losses were capped by sustained steel production in China, supporting near-term iron ore demand. However, some market participants questioned the sustainability of output levels unless finished steel demand improves to maintain mill profitability.
Volatility also persisted amid uncertainty surrounding Middle East tensions. Oil prices briefly moved above USD 100 per barrel before easing on signs of renewed US-Iran dialogue ahead of the April 21 ceasefire deadline.
In the steel market, Shagang kept long steel prices unchanged for April 11-20, reflecting cautious sentiment in the construction segment.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell to 758.5 yuan (USD 111.2) per ton. Coking coal and coke futures rose 0.33pct and 0.24pct to 1,065 yuan (USD 156) and 1,645 yuan (USD 241) per ton, respectively.
On the Shanghai Futures Exchange, rebar edged down to 3,094 yuan (USD 454) per ton, while HRC gained 0.12pct to 3,279 yuan (USD 481) per ton. Wire rod rose 0.61pct to 3,273 yuan (USD 480) per ton, and stainless steel increased 0.38pct to 14,660 yuan (USD 2,151) per ton.
1 USD / 6.81 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,273.00 | ▲ 0.61 | ▲ 0.58 |
| Hot Rolled Coils | 3,279.00 | ▲ 0.12 | ▲ 0.03 |
| Rebar | 3,094.00 | ▼ -0.06 | ▼ -0.19 |
| Stainless Steel | 14,660.00 | ▲ 0.38 | ▲ 0.85 |
| Iron ore | 758.50 | ▼ -0.07 | ▼ -0.66 |
| Coke | 1,645.00 | ▲ 0.24 | ▼ -0.21 |
| Coking Coal | 1,065.00 | ▲ 0.33 | ▼ -0.09 |
