Iron ore futures edged higher on Friday but relinquished some gains by session’s end after Beijing maintained its benchmark lending rates.
The Chinese central bank maintained the one-year loan prime rate at 3.35pct and the five-year-plus rate at 3.85pct, disappointing market expectations following an interest rate cut by the U.S. Federal Reserve earlier in the week.
Despite this, the market anticipates that Beijing will introduce economic support measures soon, limiting further losses in iron ore prices.
A modest recovery in Chinese steel production and a continued weekly decline in steel inventories at major warehouses have also provided some support to the iron ore market.
On the Dalian Commodity Exchange, the most-traded iron ore contract inched up by 0.15pct to 680 yuan (USD 96.1) per ton but saw a weekly decline of 3.41pct. Coke and coking coal futures also posted gains, rising by 0.45pct and 0.35pct, respectively, to 1,882.5 yuan (USD 266) and 1,274 yuan (USD 180) per ton.
In the Shanghai Futures Exchange, rebar futures fell by 0.28pct to 3,165 yuan (USD 447) per ton, while HRC futures increased by 0.28pct to 3,228 yuan (USD 456) per ton. Wire rod futures dropped nearly 2pct to 3,490 yuan (USD 493) per ton, and stainless steel futures edged lower by 0.11pct to 13,365 yuan (USD 1,890) per ton.
All the steelmaking raw materials and steel futures remained down compared to the previous session.
1 USD / 7.07 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,490 |
-1.97 |
-2.32 |
| HRC | 3,228 |
0.28 |
-0.65 |
| Rebar | 3,165 |
-0.28 |
-1.30 |
| Stainless Steel | 13,365 |
-0.11 |
-0.71 |
| Iron Ore | 680 |
0.15 |
-1.91 |
| Coke | 1,882.5 |
0.45 |
-1.70 |
| Coking Coal | 1,274 |
0.35 |
-1.33 |
