Iron ore futures edged lower on Monday as concerns over weak steel demand and seasonal consumption slowdown outweighed support from a sharp rally in coking coal prices.
Meanwhile, coking coal and coke futures surged amid growing supply concerns following tighter mine safety inspections in China’s key coal-producing province of Shanxi.
Market sentiment was supported by a provincial mine safety meeting held over the weekend, where authorities pledged a strict approach toward safety violations, including illegal mining activities and safety monitoring fraud. The measures follow a fatal mine accident in Shanxi last month, which led to production suspensions at several mines and raised concerns over near-term coal supply.
Despite the sharp gains in coking coal prices, iron ore remained under pressure due to expectations of increasing supply and softer steel demand during the summer season.
Market participants also assessed mixed signals from China’s manufacturing sector. Official data showed the country’s manufacturing PMI fell 0.3 percentage points month-on-month to 50.0 in May, while the RatingDog China General Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, eased to 51.8 from 52.2 in April, remaining in expansion territory.
On the Dalian Commodity Exchange, the most-traded September iron ore contract declined to 781 yuan (USD 115.4) per ton. Coking coal and coke futures rose 7.16pct and 4.84pct to 1,377 yuan (USD 204) per ton and 1,993 yuan (USD 295) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures gained 0.63pct to 3,177 yuan (USD 470) per ton, while HRC futures increased 0.65pct to 3,400 yuan (USD 503) per ton. Wire rod futures rose 1.1pct to 3,398 yuan (USD 502) per ton, whereas stainless steel futures slipped 0.37pct to 14,850 yuan (USD 2,195) per ton.
1 USD / 6.76 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,398.00 | ▲ 1.10 | ▲ 1.00 |
| Hot Rolled Coils | 3,400.00 | ▲ 0.65 | ▲ 0.53 |
| Rebar | 3,177.00 | ▲ 0.63 | ▲ 0.60 |
| Stainless Steel | 14,850.00 | ▼ -0.37 | ▼ -0.13 |
| Iron ore | 781.00 | ▼ -0.19 | ▼ -0.32 |
| Coke | 1,993.00 | ▲ 4.84 | ▲ 4.52 |
| Coking Coal | 1,377.00 | ▲ 7.16 | ▲ 6.64 |