Iron ore futures extend losses as weak demand persists

China’s iron ore futures fell further on Tuesday as weak steel continued to weigh on prices, while pre-holiday restocking provided limited support.

Market participants said narrowing steel mill margins and subdued iron ore procurement were keeping prices under pressure as the market still lacks clear bullish drivers.

Supply growth remains a key headwind, as rising globally supply and high port-side inventory continue to keep long term outlook bearish.

China’s government has pledged to accelerate existing economic support measures and introduce additional steps to support growth ahead of the fourth quarter. Planned measures include faster bond issuance and infrastructure investment, increased financing support for businesses, and further efforts to stabilize the property market and stimulate consumption. However, persistent weakness in domestic consumption, investment and real estate continues to cloud the outlook for steel demand.

On the Dalian Commodity Exchange, the most-traded iron ore contract fell 0.78 pct to 699 yuan (USD 104.1) per ton. Coking coal declined 0.28 pct to 1,448 yuan (USD 216) per ton, while coke slipped 0.10 pct to 1,940.5 yuan (USD 289) per ton.

On the Shanghai Futures Exchange, HRC futures fell 0.18 pct to 3,276 yuan (USD 488) per ton, while rebar rose 0.16 pct to 3,105 yuan (USD 463) per ton. Wire rod increased 0.27 pct to 3,365 yuan (USD 501) per ton, while stainless steel edged up 0.04 pct to 13,810 yuan (USD 2,058) per ton.

1 USD / 6.7 yuan