Iron ore futures edged lower on Monday as weak steel demand continued to weigh on market sentiment, offsetting support from weather-related disruptions to iron ore arrivals in China.
Market insiders said heavy rainfall and typhoons in parts of China continued to slow construction activity, weakening steel consumption and reducing mills’ willingness to replenish raw material inventories. Soft spot steel sales and pressured margins also kept buying interest subdued.
On the supply side, temporary disruptions to iron ore arrivals at Chinese ports due to adverse weather provided some support, although analysts expect imports to recover as weather conditions normalize. At the same time, rising global shipments and high port-side iron ore inventories continued to limit any sustained upside in prices.
Adding to the cautious sentiment, data from the China Iron and Steel Association (CISA) showed crude steel output among its member mills declined during the first half of the year compared with the same period last year.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 0.39pct to 758 yuan (USD 111.9) per ton. Coking coal futures rose 0.55pct to 1,272 yuan (USD 188) per ton, while coke futures declined 1.53pct to 1,840 yuan (USD 272) per ton.
On the Shanghai Futures Exchange, rebar futures fell 0.77pct to 3,096 yuan (USD 457) per ton. HRC futures declined 0.84pct to 3,298 yuan (USD 487) per ton. Wire rod futures edged up 0.36pct to 3,334 yuan (USD 492) per ton. Stainless steel futures slipped 0.54pct to 14,680 yuan (USD 2,168) 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 | 3,334.00 | ▲ 0.36 | ▲ 0.42 |
| Hot Rolled Coils | 3,298.00 | ▼ -0.84 | ▼ -0.61 |
| Rebar | 3,096.00 | ▼ -0.77 | ▼ -0.52 |
| Stainless Steel | 14,680.00 | ▼ -0.54 | ▲ 0.20 |
| Iron ore | 758.00 | ▼ -0.39 | ▼ -0.53 |
| Coke | 1,840.00 | ▼ -1.53 | ▼ -1.30 |
| Coking Coal | 1,272.00 | ▲ 0.55 | ▲ 0.90 |