Iron ore futures declined on Tuesday as demand concerns overshadowed persistent hopes for stimulus measures.
According to recent data from the China Iron and Steel Association (CISA), major member steel producers reported a decline in daily crude steel output during the first ten days of July. Production among CISA member steelmakers fell by 0.7pct compared to the previous 10-day period, totaling around 2.15 mln tons. This output also marked a 4pct YoY decrease.
The outlook for iron ore demand has been dimmed by increasing port-side iron ore inventories, weak steel mill margins, and sluggish steel demand.
Commodity markets are hopeful for additional stimulus measures from a key government meeting currently taking place in Beijing, though many analysts believe any positive impact on steel demand will be short-term.
On the Dalian Commodity Exchange, iron ore futures for September delivery decreased by 0.96pct to 824 yuan (USD 113.5) per ton. Meanwhile, Dalian coke futures rose by 0.62pct to 2,288 yuan (USD 315), while coking coal futures fell by 0.54pct to 1,571 yuan (USD 216) per ton.
On the Shanghai Futures Exchange, rebar futures edged down by 0.08pct to 3,541 yuan (USD 488) per ton. HRC futures decreased slightly by 0.05pct to 3,731 yuan (USD 514) per ton. Wire rod futures dropped by 0.35pct to 3,682 yuan (USD 507) per ton, while stainless steel futures increased by 0.47pct to 13,965 yuan (USD 1,924) per ton.
1 USD / 7.25 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,682 |
-0.35 |
-0.08 |
| HRC | 3,731 |
0.05 |
-0.08 |
| Rebar | 3,541 |
-0.08 |
-0.28 |
| Stainless Steel | 13,965 |
0.47 |
0.29 |
| Iron Ore | 824 |
-0.96 |
-1.21 |
| Coke | 2,288 |
0.62 |
-0.09 |
| Coking Coal | 1,571 |
-0.54 |
-0.60 |
