Iron ore futures gained on Thursday, driven by a more optimistic short-term demand outlook.
The National Development and Reform Commission (NDRC) of China released a survey indicating a cautious optimism for the Chinese steel market in August as it expects improved weather conditions this month could boost downstream demand.
Additionally, Rio Tinto anticipates around 5pct growth in the Chinese economy, which is seen as positive for commodity markets.
Weak Chinese economic data has heightened expectations for additional government stimulus. July’s weak manufacturing data further fueled these hopes. The Caixin/S&P Global manufacturing PMI fell to 49.8 in July from 51.8 in June, reflecting ongoing contraction, as confirmed by official PMI data. This data aligns with the official PMI, which has shown a third consecutive month of contraction. The Caixin poll, focused on smaller, export-oriented firms, provides a different perspective from the official survey.
Despite the improved sentiment, long-term concerns persist due to high iron ore inventories at ports and a downturn in the property sector.
On the Dalian Commodity Exchange, September iron ore futures rose by 2.35pct to 783.5 yuan (USD 108.4) per ton. Conversely, Dalian coke and coking coal futures fell by 1.18pct and 1.68pct, respectively, to 2,013.5 yuan (USD 279) per ton and 1,431 yuan (USD 198) per ton.
On the Shanghai Futures Exchange, rebar futures increased by 1.08pct to 3,355 yuan (USD 464) per ton, and HRC futures grew by 0.78pct to 3,505 yuan (USD 485) per ton. Wire rod futures rose by 0.24pct to 3,372 yuan (USD 466) per ton, while stainless steel futures climbed by 0.71pct to 14,105 yuan (USD 1,952) per ton.
1 USD / 7.22 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,372 |
0.24 |
0.95 |
| HRC | 3,505 |
0.78 |
0.74 |
| Rebar | 3,355 |
1.08 |
0.86 |
| Stainless Steel | 14,105 |
0.71 |
0.18 |
| Iron Ore | 783.5 |
2.35 |
1.98 |
| Coke | 2,013.5 |
-1.18 |
-1.14 |
| Coking Coal | 1,431 |
-1.68 |
-2.13 |
