Iron ore futures edged lower on Friday as rising global supply and a slowing pace of restocking weighed on market sentiment.
Higher iron ore shipments from major miners, coupled with high port inventories in China, continued to pressure the market. Market insiders noted signs of slowing steel production growth in China, while downstream steel demand showed signs of easing, reflected in the slower decline of major finished steel inventories.
Chinese steel traders reported that the sharp rise in prices earlier this week triggered some selling pressure, slowing buying activity in the spot market. However, some market sources said demand remained relatively stable and that buying sentiment could improve following a price correction.
Iron ore prices continued to receive some support from ongoing geopolitical tensions in the Middle East, which have increased freight and energy costs.
On the Dalian Commodity Exchange, the most-traded September iron ore contract edged down to 814.5 yuan (USD 119.7) per ton. Coking coal and coke futures declined by 0.69pct and 1.24pct to 1,286 yuan (USD 189) and 1,828 yuan (USD 269) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures edged lower to 3,263 yuan (USD 480) per ton, while HRC futures declined by 0.29pct to 3,473 yuan (USD 511) per ton. Wire rod futures fell by 0.64pct to 3,400 yuan (USD 500) per ton, while stainless steel futures dropped by 2.51pct to 15,135 yuan (USD 2,225) per ton.
1 USD / 6.8 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,400.00 | ▼ -0.64 | ▼ -0.35 |
| Hot Rolled Coils | 3,473.00 | ▼ -0.29 | ▼ -0.55 |
| Rebar | 3,263.00 | ▼ -0.06 | ▼ -0.31 |
| Stainless Steel | 15,135.00 | ▼ -2.51 | ▼ -3.20 |
| Iron ore | 814.50 | ▼ -0.06 | ▼ -0.31 |
| Coke | 1,828.00 | ▼ -1.24 | ▼ -1.75 |
| Coking Coal | 1,286.00 | ▼ -0.69 | ▼ -1.40 |