Iron ore futures extended gains for a third consecutive session on Thursday, driven by China’s pledge for additional stimulus, which restored confidence just as the effects of the latest monetary easing measures began to wane.
China’s Politburo, the country’s top decision-making body, announced plans for further fiscal and monetary actions to boost the economy. This comes shortly after the central bank rolled out a series of aggressive easing measures, reflecting the growing urgency among policymakers to revive economic growth.
The iron ore market is also benefiting from restocking demand ahead of China’s public holidays from October 1-7, along with a consistent weekly decline in steel inventory at major Chinese warehouses. In response to the improving steel demand, Chinese steel producers have ramped up production. During September 11-20, daily crude steel output at China Iron and Steel Association (CISA) member mills increased by 2.7pct compared to the previous 10 days. However, analysts have cautioned that rising steel production could hinder market recovery by putting downward pressure on finished steel prices.
On the Dalian Commodity Exchange, the most-traded iron ore contract rose by 1.75pct to 728 yuan (USD 103.5) per ton. Coke and coking coal futures also saw gains, rising by 2.2pct to 1,999.5 yuan (USD 285) and 2.44pct to 1,362 yuan (USD 194) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures increased by 1.05pct to 3,281 yuan (USD 467) per ton, and HRC futures rose by 0.66pct to 3,352 yuan (USD 477) per ton. In contrast, wire rod futures dropped nearly 4.8pct to 3,376 yuan (USD 480) per ton, while stainless steel futures inched down by 0.07pct to 13,405 yuan (USD 1,907) per ton.
1 USD / 7.02 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,376 |
-4.79 |
-2.22 |
| HRC | 3,352 |
0.66 |
1.37 |
| Rebar | 3,281 |
1.05 |
1.71 |
| Stainless Steel | 13,405 |
-0.07 |
0.15 |
| Iron Ore | 728 |
1.75 |
2.61 |
| Coke | 1,999.5 |
2.20 |
2.18 |
| Coking Coal | 1,362 |
2.44 |
2.75 |
