Iron ore futures dipped slightly on Tuesday after giving up earlier gains, as the market remained cautious about steel demand recovery. Typically, the peak steel consumption months of September and October support steelmaking raw material prices. However, the modest rebound in steel demand and concerns over rising production, which may outpace demand, kept market sentiment bearish.
Higher port-side iron ore inventories and weak steel mill margins continue to present challenges for the iron ore market. Additionally, a sluggish start to the second half is increasing pressure on the Chinese economy, raising hopes for stimulus measures. However, most analysts expect any stimulus to be limited and targeted, rather than the large-scale infrastructure-focused incentives seen in the past, due to the property sector crisis and mounting debt levels.
On the Dalian Commodity Exchange, the most-traded iron ore contract edged down 0.07pct to 675 yuan (USD 94.9) per ton. Coke and coking coal futures increased by 0.45pct and 1.24pct, respectively, to 1,772 yuan (USD 249) and 1,227.5 yuan (USD 173) per ton. All three steelmaking raw material futures posted losses compared to the previous morning session.
In the Shanghai Futures Exchange, rebar futures rose 1.58pct to 3,080 yuan (USD 433) per ton, while HRC futures gained 1.75pct to 3,136 yuan (USD 441) per ton. Wire rod futures increased by 1.6pct to 3,439 yuan (USD 484) per ton. Stainless steel futures fell by 0.41pct to 13,235 yuan (USD 1,861) per ton.
1 USD / 7.11 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,439 |
1.60 |
0.23 |
| HRC | 3,136 |
1.75 |
-0.13 |
| Rebar | 3,080 |
1.58 |
0.06 |
| Stainless Steel | 13,235 |
-0.41 |
-0.30 |
| Iron Ore | 675 |
-0.07 |
-1.48 |
| Coke | 1,772 |
0.45 |
-0.45 |
| Coking Coal | 1,227.5 |
1.24 |
-0.24 |
