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China’s iron ore futures remained under pressure on Friday as weak steel mill profitability, expectations of rising global supply and cautious market sentiment weighed on prices.
Steelmakers continue to face squeezed margins, with industry analysts reporting that only around 7pct of Chinese steelmakers were profitable in early October. Mounting losses have prompted some mills to bring forward or plan equipment maintenance, potentially curbing near-term iron ore demand.
Meanwhile, global iron ore supply is expected to increase further this quarter, adding to downward pressure.
After the recent sell-off, market participants are adopting a wait-and-see approach. Low iron ore valuations may limit further declines in the near term, although a sustained recovery will depend on improvements in steel mill profitability and hot metal production.
On the Dalian Commodity Exchange, the most-traded iron ore contract was last down 1.16pct at 682.5 yuan (USD 101.9) per ton. Coking coal rose 4.30pct to 1,539.5 yuan (USD 230) per ton, while coke increased 2.98pct to 2,020 yuan (USD 302) per ton.
On the Shanghai Futures Exchange, rebar was unchanged at 3,080 yuan (USD 460) per ton. HRC rose 0.18pct to 3,255 yuan (USD 486) per ton, wire rod gained 1.54pct to 3,434 yuan (USD 513) per ton, and stainless steel increased 0.26pct to 13,510 yuan (USD 2,018) 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 | 3,434.00 | ▲ 1.54 | ▲ 1.86 |
| Hot Rolled Coils | 3,255.00 | ▲ 0.18 | ▲ 0.40 |
| Rebar | 3,080.00 | 0.00 | ▲ 0.62 |
| Stainless Steel | 13,510.00 | ▲ 0.26 | ▲ 0.41 |
| Iron ore | 682.50 | ▼ -1.16 | 0.00 |
| Coke | 2,020.00 | ▲ 2.98 | ▲ 3.32 |
| Coking Coal | 1,539.50 | ▲ 4.30 | ▲ 4.12 |
