Iron ore futures extended gains on Wednesday as Beijing’s recent stimulus measures fueled optimism for steel demand. Following Tuesday’s broad policy easing, the Chinese central bank cut medium-term lending rates to banks.
While these measures provide short-term support for the steel market, analysts caution that more action is needed to address structural economic issues.
A decline in steel inventories at major Chinese warehouses also supports demand optimism during the September-October peak season. An NDRC survey expects steel prices to rise in September but warns that higher profitability could drive steelmakers to increase production, potentially harming the market recovery and putting pressure on prices.
Despite the positive momentum, long-term iron ore demand remains uncertain due to high port inventories and struggles in the property sector, a key steel consumer.
On the Dalian Commodity Exchange, iron ore surged 4.19pct to 709 yuan (USD 100.7) per ton. Coke and coking coal futures also saw gains, up 4.71pct to 1,956 yuan (USD 278) and 4.5pct to 1,324.5 yuan (USD 188) per ton, respectively.
In the Shanghai Futures Exchange, rebar futures rose 2.35pct to 3,225 yuan (USD 458) per ton, and HRC futures climbed 2.19pct to 3,306 yuan (USD 470) per ton. Wire rod futures dropped 1.57pct to 3,451 yuan (USD 490) per ton, while stainless steel futures gained 1.56pct to 13,385 yuan (USD 1,902) per ton.
1 USD / 7.03 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,451 |
-1.57 |
-2.84 |
| HRC | 3,306 |
2.19 |
0.18 |
| Rebar | 3,225 |
2.35 |
0.25 |
| Stainless Steel | 13,385 |
1.56 |
0.67 |
| Iron Ore | 709 |
4.19 |
1.34 |
| Coke | 1,956 |
4.71 |
1.58 |
| Coking Coal | 1,324.5 |
4.50 |
1.62 |
