Iron ore futures declined on Thursday as persistent concerns over steel demand continued to weigh on market sentiment.
The seasonal slowdown in Chinese steel consumption has led to rising inventories of finished steel at major warehouses, putting further pressure on steel mills’ profitability. Export activity has also softened in recent weeks amid increasing protectionist measures, sluggish overseas demand and geopolitical tensions in the Middle East.
Although regional tensions have eased, market participants said logistics bottlenecks are expected to persist as port congestion continues to affect steel shipments to GCC markets.
In the near term, iron ore prices are finding some support from resilient Chinese crude steel production, which has remained relatively high despite weaker demand. However, the medium-term outlook remains bearish due to elevated iron ore inventories at Chinese ports and expectations of higher global supply in the second half of the year.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 1.08pct to 735 yuan (USD 108.1) per ton. Coking coal and coke futures declined 0.88pct and 0.77pct to 1,238.5 yuan (USD 182) per ton and 1,932 yuan (USD 284) per ton, respectively.
On the Shanghai Futures Exchange, rebar and HRC futures both declined 0.45pct to 3,098 yuan (USD 456) per ton and 3,312 yuan (USD 487) per ton, respectively. Wire rod futures fell 1.15pct to 3,346 yuan (USD 492) per ton, while stainless steel futures dropped 0.51pct to 14,675 yuan (USD 2,159) per ton.
1 USD / 6.79 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,346.00 | ▼ -1.15 | ▼ -0.75 |
| Hot Rolled Coils | 3,312.00 | ▼ -0.45 | ▼ -0.39 |
| Rebar | 3,098.00 | ▼ -0.45 | ▼ -0.42 |
| Stainless Steel | 14,675.00 | ▼ -0.51 | ▼ -0.14 |
| Iron ore | 735.00 | ▼ -1.08 | ▼ -1.22 |
| Coke | 1,932.00 | ▼ -0.77 | ▼ -0.80 |
| Coking Coal | 1,238.50 | ▼ -0.88 | ▼ -0.57 |