Iron ore futures tumbled on Monday as market sentiment weakened due to the absence of new stimulus measures from Beijing.
Despite expectations of a rate cut to bolster the economy, the Chinese central bank kept the one-year and five-year loan prime rates (LPR) unchanged after a series of lackluster economic data, following the U.S. Federal Reserve’s interest rate cut last week.
The demand outlook for iron ore remains bearish, driven by high port-side inventories and ongoing economic challenges, particularly in the property sector. Additionally, Chinese steel exports face increasing risks from protectionist measures in key markets.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell by 4.5pct to 658.5 yuan (USD 93.3) per ton. Coke and coking coal futures also saw sharp declines, dropping 4.35pct to 1,812.5 yuan (USD 257) and 4.02pct to 1,230.5 yuan (USD 174) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures plunged by 3.35pct to 3,087 yuan (USD 438) per ton, while HRC futures declined by 2.49pct to 3,167 yuan (USD 449) per ton. Wire rod futures dropped 1.65pct to 3,467 yuan (USD 492) per ton, and stainless steel futures decreased by 2.24pct to 13,110 yuan (USD 1,859) per ton.
1 USD / 7.05 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,467 |
-1.65 |
-0.66 |
| HRC | 3,167 |
-2.49 |
-1.93 |
| Rebar | 3,087 |
-3.35 |
-2.53 |
| Stainless Steel | 13,110 |
-2.24 |
-1.95 |
| Iron Ore | 658.5 |
-4.50 |
-3.26 |
| Coke | 1,812.5 |
-4.35 |
-3.86 |
| Coking Coal | 1,230.5 |
-4.02 |
-3.54 |
