Iron ore futures edged lower on Thursday as the market remained rangebound, with weaker coking coal and coke prices offsetting near-term support.
Iron ore fundamentals remained broadly balanced but lacked a strong bullish catalyst, while elevated Chinese port inventories continued to weigh on sentiment.
Broader domestic steel demand remained weak, with traders largely adopting a wait-and-see approach ahead of the expected autumn demand season.
The steel market received some support from recent price increases by major mills. Ansteel and Benxi raised flat steel prices by 50 yuan (USD 7) per ton for September, following a similar increase by Baosteel earlier this week.
Coking coal, which had provided strong support to the ferrous complex in recent sessions, eased today. Despite the decline, market insiders said tighter coal availability and cost pressures continued to support coke prices, although weak steel demand remained a constraint.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 0.21pct to 705 yuan (USD 104.5) per ton. Coking coal futures declined 1.20pct to 1,320.5 yuan (USD 196) per ton, while coke futures dropped 0.89pct to 1,890.5 yuan (USD 280) per ton.
On the Shanghai Futures Exchange, rebar futures declined 0.30pct to 3,002 yuan (USD 445) per ton, while HRC futures fell 0.34pct to 3,233 yuan (USD 479) per ton. Wire rod futures decreased 0.18pct to 3,275 yuan (USD 486) per ton. Stainless steel futures declined 0.96pct to 14,385 yuan (USD 2,133) 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 | 3,275.00 | ▼ -0.18 | ▼ -0.34 |
| Hot Rolled Coils | 3,233.00 | ▼ -0.34 | ▼ -0.19 |
| Rebar | 3,002.00 | ▼ -0.30 | ▼ -0.27 |
| Stainless Steel | 14,385.00 | ▼ -0.96 | ▼ -1.04 |
| Iron ore | 705.00 | ▼ -0.21 | ▼ -2.20 |
| Coke | 1,890.50 | ▼ -0.89 | ▼ -0.82 |
| Coking Coal | 1,320.50 | ▼ -1.20 | ▼ -1.29 |