Iron ore futures edged higher on Wednesday, holding near two-week highs as continued strength in coking coal and coke provided cost support, while weak steel demand and ample supply limited further gains.
Coking coal remained the main positive factor for the ferrous complex, with tighter mine supply due to ongoing safety inspections supporting prices. However, weak steel mill margins continued to limit buying appetite.
Iron ore fundamentals, meanwhile, remained relatively weak. Industry insiders said steel production could decline in the near future, which could further limit iron ore demand. As a result, iron ore prices are likely to remain rangebound in the near term.
Chinese steel traders said the domestic market lacked strong momentum despite some improvement in trading activity. Shagang kept its long steel list prices unchanged for August 11-20, reflecting cautious market sentiment. Some traders, however, expect the approaching autumn season to bring a gradual improvement in steel demand.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 0.14pct to 720.5 yuan (USD 106.9) per ton. Coking coal futures increased 2.06pct to 1,337.5 yuan (USD 198.4) per ton, while coke futures gained 1.11pct to 1,906 yuan (USD 282.8) per ton.
On the Shanghai Futures Exchange, wire rod futures rose 0.70pct to 3,286 yuan (USD 487.5) per ton, HRC futures increased 0.19pct to 3,239 yuan (USD 480.6) per ton and rebar futures gained 0.27pct to 3,010 yuan (USD 446.6) per ton. Stainless steel futures edged 0.17pct higher to 14,535 yuan (USD 2,157.6) per ton.
1 USD / 6.74 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,286.00 | ▲ 0.70 | ▲ 0.03 |
| Hot Rolled Coils | 3,239.00 | ▲ 0.19 | ▼ -0.15 |
| Rebar | 3,010.00 | ▲ 0.27 | ▼ -0.20 |
| Stainless Steel | 14,535.00 | ▲ 0.17 | ▲ 0.07 |
| Iron ore | 720.50 | ▲ 0.14 | ▼ -0.14 |
| Coke | 1,906.00 | ▲ 1.11 | ▼ -0.21 |
| Coking Coal | 1,337.50 | ▲ 2.06 | ▼ -0.45 |