Iron ore futures moved lower on Monday as concerns over slowing steel demand and high supply levels continued to weigh on market sentiment.
Analysts noted that port-side trading activity has slowed, while iron ore imports remain strong, a combination that is expected to keep pressure on prices in the near term.
Chinese steel traders reported that finished steel demand is weakening in line with the typical summer slowdown, while steel production remains relatively high. The imbalance between supply and demand has continued to pressure finished steel prices and steelmakers’ profitability.
Market insiders said the squeeze on mill margins could eventually lead to production cuts, reducing iron ore consumption. However, some traders noted that demand for semi-finished steel remains relatively firm due to export orders, helping some mills to maintain profitability despite softer domestic steel sales.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 0.78pct to 759 yuan (USD 111.9) per ton. Coking coal and coke futures declined 1.0pct and 1.46pct to 1,429.5 yuan (USD 211) per ton and 2,022 yuan (USD 298) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures edged lower to 3,157 yuan (USD 466) per ton, while HRC futures slipped 0.15pct to 3,373 yuan (USD 498) per ton. Wire rod futures inched higher to 3,360 yuan (USD 496) per ton, while stainless steel futures gained 0.14pct to 14,665 yuan (USD 2,163) per ton.
1 USD / 6.77 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,360.00 | ▲ 0.06 | ▼ -0.21 |
| Hot Rolled Coils | 3,373.00 | ▼ -0.15 | ▼ -0.24 |
| Rebar | 3,157.00 | ▼ -0.09 | ▼ -0.25 |
| Stainless Steel | 14,665.00 | ▲ 0.14 | ▲ 0.38 |
| Iron ore | 759.00 | ▼ -0.78 | ▼ -0.92 |
| Coke | 2,022.00 | ▼ -1.46 | ▼ -0.96 |
| Coking Coal | 1,429.50 | ▼ -1.00 | ▼ -2.06 |