Dalian iron ore futures recovered on Friday, buoyed by Beijing’s latest stimulus measure, although demand fundamentals remain weak.
Chinese authorities announced the allocation of 300 bln yuan (USD 41.4 bln) in ultra-long special government bonds to enhance an existing trade-in and equipment upgrade policy. This move was jointly published by the National Development and Reform Commission, China’s economic planning agency, and the Ministry of Finance.
While this measure is expected to boost steel demand, some analysts are skeptical about its impact. Weak steel mill margins, rising portside inventory, and a troubled property sector continue to pose challenges for the steel industry.
On the Dalian Commodity Exchange, iron ore futures for September delivery rose by 1.5pct to 779 yuan (USD 107.6) per ton. Dalian coke and coking coal futures also increased by 0.43pct and 0.57pct to 2,085 yuan (USD 288) and 1,487.5 yuan (USD 206) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures grew by 0.66pct to 3,371 yuan (USD 466) per ton, HRC futures rose by 0.65pct to 3,557 yuan (USD 491) per ton, and wire rod futures increased by 0.44pct to 3,408 yuan (USD 471) per ton. In contrast, stainless steel futures decreased by 0.22pct to 13,860 yuan (USD 1,915) per ton.
1 USD / 7.23 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,408 |
0.44 |
1.41 |
| HRC | 3,557 |
0.65 |
1.10 |
| Rebar | 3,371 |
0.66 |
1.25 |
| Stainless Steel | 13,860 |
-0.22 |
0.69 |
| Iron Ore | 779 |
1.50 |
1.86 |
| Coke | 2,085 |
0.43 |
1.10 |
| Coking Coal | 1,487.5 |
0.57 |
0.91 |
