Iron ore futures declined on Thursday as rising supply and weak steel demand continued to weigh on market sentiment.
Market insiders said rising iron ore supply, coupled with weakening margins at Chinese steel mills and the seasonal slowdown in construction activity, has kept the outlook for the raw material bearish.
Chinese steel traders noted that rebar demand has slowed noticeably, while steel production remains relatively stable despite weaker summer consumption. The imbalance has continued to pressure finished steel prices. Some steel traders also reported disruptions to export activity due to congestion at certain ports.
Reflecting the cautious market environment, major Chinese steelmaker Shagang left domestic long steel prices unchanged for mid-June sales.
In contrast, coking coal futures moved higher amid reports of tighter supply, with several coal mines remaining under shutdown following safety inspections introduced after a fatal mining accident in Shanxi province last month.
Meanwhile, the Dalian Commodity Exchange (DCE) announced new measures for coke futures trading, including a daily trading limit of 500 lots for non-futures company members and clients. The exchange will also reduce margin requirements for both speculative and hedging positions effective from June 12.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 0.46pct to 764 yuan (USD 112.7) per ton. Coking coal and coke futures rose 0.37pct and 2.31pct to 1,362 yuan (USD 201) per ton and 2,011 yuan (USD 297) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures declined 0.32pct to 3,156 yuan (USD 466) per ton, while HRC futures fell 0.33pct to 3,358 yuan (USD 496) per ton. Wire rod futures slipped 0.21pct to 3,372 yuan (USD 498) per ton, while stainless steel futures edged up to 14,425 yuan (USD 2,129) 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 | 3,372.00 | ▼ -0.21 | ▲ 0.06 |
| Hot Rolled Coils | 3,358.00 | ▼ -0.33 | ▼ -0.66 |
| Rebar | 3,156.00 | ▼ -0.32 | ▼ -0.76 |
| Stainless Steel | 14,425.00 | ▲ 0.17 | ▲ 0.28 |
| Iron ore | 764.00 | ▼ -0.46 | ▼ -0.98 |
| Coke | 2,011.00 | ▲ 2.31 | ▲ 1.39 |
| Coking Coal | 1,362.00 | ▲ 0.37 | ▼ -0.11 |