Iron ore futures plunged on Monday, weighed down by weak official PMI data. The manufacturing PMI dropped to a six-month low of 49.1, according to the National Bureau of Statistics, intensifying pressure on Beijing to implement additional policy measures.
However, a private-sector survey by Caixin and S&P Global Ratings showed improvement, with the PMI rising to 50.4 in August, rebounding from the contractionary level of 49.8 in July.
The disparity between the official and Caixin surveys arises from differences in sample compositions; the official PMI includes larger state-owned entities, while Caixin’s focuses on export-oriented businesses and smaller to medium-sized enterprises.
China’s steel industry PMI also declined for the third consecutive month, falling to 40.4 in August from 42.5 in July, according to the CFLP Steel Logistics Professional Committee (CSLPC). Weak domestic demand and a sharp decline in steel prices have contributed to this downturn. Additionally, the troubled property sector and rising protectionist measures against Chinese steel globally continue to pose challenges for the iron ore market.
The most-traded iron ore contract on the Dalian Commodity Exchange fell by 4.36pct to 723.5 yuan (USD 101.9) per ton. Dalian coke and coking coal futures also slumped by 3.52pct and 3.66pct, respectively, to 1,931 yuan (USD 272) per ton and 1,327.5 yuan (USD 187) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures declined by 2.3pct to 3,223 yuan (USD 454) per ton, and HRC futures decreased by 1.82pct to 3,285 yuan (USD 463) per ton. Wire rod futures ended flat at 3,150 yuan (USD 444) per ton, while stainless steel futures dropped by 2.38pct to 13,555 yuan (USD 1,911) per ton.
1 USD / 7.09 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,150 |
0 |
-4.25 |
| HRC | 3,285 |
-1.82 |
-0.52 |
| Rebar | 3,223 |
-2.30 |
0.03 |
| Stainless Steel | 13,555 |
-2.38 |
-2.25 |
| Iron Ore | 723.5 |
-4.36 |
-4.22 |
| Coke | 1,931 |
-3.52 |
-3.39 |
| Coking Coal | 1,327.5 |
-3.66 |
-3.24 |
