Iron ore futures surged on Monday, buoyed by optimism that steel demand may increase in the near future.
Market sentiment improved as traders anticipated that recent property-support measures and better weather conditions could bolster downstream steel consumption. Additionally, hopes for an interest rate cut by the US Federal Reserve lifted commodity markets.
However, long-term demand concerns persist due to high port-side iron ore inventories and Beijing’s recent decision to suspend the steel capacity swap program, signaling China’s commitment to reducing its vast steel production capacity.
On the Dalian Commodity Exchange, the most-traded iron ore futures contract rose 3.45pct to 750.5 yuan (USD 105.3) per ton. Dalian coke and coking coal futures also advanced, gaining 3.41pct and 2.52pct to 1,973 yuan (USD 277) and 1,361 yuan (USD 191) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures increased by 2.64pct to 3,264 yuan (USD 458) per ton, while HRC futures climbed 2.72pct to 3,328 yuan (USD 467) per ton. Wire rod futures edged up 0.73pct to 3,192 yuan (USD 448) per ton, and stainless steel futures rose 0.8pct to 13,810 yuan (USD 1,939) per ton.
1 USD / 7.12 yuan
