Iron ore futures plunged on Monday as the traditional slowdown in steel demand, weighing on market sentiments.
Despite a recent weekly drop, mounting iron ore inventory at Chinese ports continues to pressure iron ore prices. Additionally, higher imports from major iron ore miners are contributing to the downward pressure.
Steel demand, typically weak during the summer, impacts construction activity. Combined with ongoing issues in the troubled property sector, the steel demand outlook remains bearish, further affecting iron ore outlook.
On the Dalian Commodity Exchange, iron ore futures for September delivery ended daytime trading with a decline of 3.11pct to 795.5 yuan (USD 109.5) per ton. Dalian coke and coking coal futures also fell by 2.14pct and 2.34pct, respectively, to 2,195 yuan (USD 302) per ton and 1,543 yuan (USD 212) per ton.
On the Shanghai Futures Exchange, rebar futures declined by 1.51pct to 3,532 yuan (USD 486) per ton, while HRC futures dropped by 1.11pct to 3,729 yuan (USD 513) per ton. Wire rod futures decreased by 1.63pct to 3,808 yuan (USD 524) per ton. Stainless steel futures remained almost unchanged at 13,915 yuan (USD 1,916) per ton.
1 USD / 7.26 yuan
| Material | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
| Wire Rod | 3,808 | -1.63 | 0.53 |
| HRC | 3,729 | -1.11 | -0.64 |
| Rebar | 3,532 | -1.51 | -0.88 |
| Stainless Steel | 13,915 | -0.04 | 0.43 |
| Iron Ore | 795.5 | -3.11 | -2.01 |
| Coke | 2,195 | -2.14 | -0.91 |
| Coking Coal | 1,543 | -2.34 | -1.10 |
