This Content Is Only For Paid Subscribers
China’s iron ore futures traded rangebound on Monday as pre-holiday restocking by steel mills provided support, while high inventories and weak mill profitability limited upward momentum.
Analysts said steel mills are replenishing their inventories before the October 1-7 holiday, providing support to iron ore prices. However, high port inventories and rising global supplies continue to weigh on the longer-term outlook.
Chinese domestic steel prices were generally firmer. Major Chinese steel producer Shagang raised domestic long steel prices by 50 yuan (USD 7.5) per ton for the final ten days of September. Export offers have also moved higher, although rising freight costs and weak mill profitability are keeping market participants cautious.
On the Dalian Commodity Exchange, the most-traded iron ore contract rose slightly to 715 yuan (USD 106.7) per ton. Coking coal fell 0.26 pct to 1,523 yuan (USD 227), while coke was almost unchanged at 1,985 yuan (USD 296) per ton.
On the Shanghai Futures Exchange, HRC futures rose 0.18 pct to 3,308 yuan (USD 494) per ton, while rebar gained 0.42 pct to 3,117 yuan (USD 465) per ton. Wire rod increased 0.79 pct to 3,444 yuan (USD 514) per ton, while stainless steel rose 0.26 pct to 13,725 yuan (USD 2,050) per ton.
1 USD / 6.69 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,444.00 | ▲ 0.79 | ▲ 0.52 |
| Hot Rolled Coils | 3,308.00 | ▲ 0.18 | ▲ 0.54 |
| Rebar | 3,117.00 | ▲ 0.42 | ▲ 0.67 |
| Stainless Steel | 13,725.00 | ▲ 0.26 | ▲ 0.22 |
| Iron ore | 715.00 | ▲ 0.14 | ▼ -0.07 |
| Coke | 1,985.00 | ▼ -0.03 | ▲ 1.64 |
| Coking Coal | 1,523.00 | ▼ -0.26 | ▲ 2.36 |