Dalian iron ore futures slipped on Tuesday as concerns grew over weaker demand prospects and rising shipments from major iron ore miners.
The World Steel Association forecasts a 0.9pct decline in global steel demand to 1.751 bln tons in 2024. The outlook for China is particularly challenging, with demand expected to drop by 3pct in 2024 and an additional 1pct in 2025, though potential government interventions could soften these declines, according to the association.
Iron ore futures had rallied in recent weeks following Beijing’s stimulus measures, with markets anticipating further policies to help China meet its annual GDP target. However, persistent weak economic growth, rising iron ore inventories at major Chinese ports, and increased steel inventories at key warehouses have dampened market sentiment.
Analysts also highlighted growing protectionist measures and slowing demand globally, which could impact Chinese steel exports.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell 0.38pct to 791.5 yuan (USD 111.7) per ton. Coke and coking coal futures also declined, down 0.62pct to 2,149 yuan (USD 303) per ton and 1.28pct to 1,471 yuan (USD 208) per ton, respectively.
Over on the Shanghai Futures Exchange, rebar and hot-rolled coil (HRC) futures both dropped 0.72pct, to 3,467 yuan (USD 489) and 3,603 yuan (USD 509) per ton, respectively. Wire rod futures fell 0.4pct to 3,775 yuan (USD 533) per ton, while stainless steel futures slid 1.21pct to 13,915 yuan (USD 1,964) per ton.
1 USD / 7.08 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,775 |
-0.40 |
-0.32 |
| HRC | 3,603 |
-0.72 |
-0.86 |
| Rebar | 3,467 |
-0.72 |
-1.01 |
| Stainless Steel | 13,915 |
-1.21 |
-0.93 |
| Iron Ore | 791.5 |
-0.38 |
-1.14 |
| Coke | 2,149 |
-0.38 |
-1.28 |
| Coking Coal | 1,471 |
-1.28 |
-1.87 |
