Iron ore futures gained on Friday amid hopes for additional stimulus measures from Beijing, though concerns about demand remained.
The market anticipates new stimulus following weak Chinese manufacturing data released earlier this week. Additionally, expectations for improved steel demand have emerged after the National Development and Reform Commission (NDRC) of China released a survey suggesting cautious optimism for the Chinese steel market in August, with improved weather conditions potentially boosting downstream demand.
Despite a slight weekly drop, iron ore stockpiles at major Chinese ports remain near record highs. Analysts warn that weak steel mill margins may lead steel producers to cut output, which could dampen the iron ore demand outlook.
In response to the bearish market sentiment, major steel producer Shagang has reduced the list prices of its long steel products by 150 yuan (USD 21) per ton for the first ten days of August.
On the Dalian Commodity Exchange, iron ore futures for January 2025 delivery rose by 2.16pct to 779 yuan (USD 107.5) per ton. In contrast, Dalian coke and coking coal futures fell by 0.44pct and 1.52pct, respectively, to 2,016 yuan (USD 278) per ton and 1,426 yuan (USD 197) per ton.
On the Shanghai Futures Exchange, rebar futures increased by 0.78pct to 3,379 yuan (USD 467) per ton, and HRC futures grew by 0.31pct to 3,525 yuan (USD 487) per ton. However, wire rod futures decreased by 0.27pct to 3,351 yuan (USD 463) per ton, while stainless steel futures inched down by 0.04pct to 14,115 yuan (USD 1,950) per ton.
1 USD / 7.24 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,351 |
-0.27 |
-0.63 |
| HRC | 3,525 |
0.31 |
0.57 |
| Rebar | 3,379 |
0.78 |
0.71 |
| Stainless Steel | 14,115 |
-0.04 |
0.07 |
| Iron Ore | 779 |
2.16 |
-0.58 |
| Coke | 2,016 |
-0.44 |
0.12 |
| Coking Coal | 1,426 |
-1.52 |
-0.35 |
