Iron ore futures declined on Tuesday as weak steel market fundamentals continued to weigh on sentiment, with the outlook for demand remaining uncertain.
Market sources said the seasonal slowdown in steel consumption has kept finished steel prices under pressure, prompting expectations that Chinese steel mills could bring forward maintenance schedules to curb output and ease oversupply in the steel market. However, lower steel production would also reduce iron ore consumption.
High iron ore supply and elevated portside inventories in China remained the main bearish factors. Major miners continue to increase shipments to meet mid-year production targets, adding to inventory levels and reinforcing supply-side pressure.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 0.47pct to 735.5 yuan (USD 108.2) per ton. Coking coal and coke futures declined 1.24pct and 0.77pct to 1,273 yuan (USD 187) per ton and 1,936 yuan (USD 285) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures edged down to 3,068 yuan (USD 452) per ton, while HRC futures fell 0.21pct to 3,283 yuan (USD 483) per ton. Wire rod futures declined 0.45pct to 3,334 yuan (USD 491) per ton, while stainless steel futures rose 1.86pct to 14,775 yuan (USD 2,174) 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 | 3,334.00 | ▼ -0.45 | ▼ -0.18 |
| Hot Rolled Coils | 3,283.00 | ▼ -0.21 | ▼ -0.18 |
| Rebar | 3,068.00 | ▼ -0.20 | ▼ -0.13 |
| Stainless Steel | 14,775.00 | ▲ 1.86 | ▲ 0.24 |
| Iron ore | 735.50 | ▼ -0.47 | ▼ -0.34 |
| Coke | 1,936.00 | ▼ -0.77 | ▼ -0.77 |
| Coking Coal | 1,273.00 | ▼ -1.24 | ▼ -0.82 |