Iron ore futures edged lower on Thursday as concerns over weakening steel demand weighed on the outlook for iron ore.
Domestic steel demand is softening, and the upcoming winter season, which typically slows construction activity, is also curbing iron ore purchases by steel mills. This is reflected in the rising port-side iron ore inventory, which is already at elevated levels. Additionally, production growth by major miners has raised concerns about a potential oversupply.
On the Dalian Commodity Exchange, the most-traded iron ore contract closed the morning session slightly down by 0.26pct to 755 yuan (USD 105.9) per ton. Coke and coking coal futures also declined, with coke down 0.61pct to 1,961 yuan (USD 275) per ton and coking coal down 0.37pct to 1,337 yuan (USD 188) per ton.
In the Shanghai Futures Exchange, rebar futures dipped 0.12pct to 3,330 yuan (USD 467) per ton, while HRC futures fell 0.2pct to 3,483 yuan (USD 489) per ton. Wire rod futures dropped 0.53pct to 3,546 yuan (USD 497) per ton. Stainless steel futures gained 0.59pct to 13,640 yuan (USD 1,913) per ton.
Despite the declines in the morning, all steelmaking raw materials and steel futures showed gains compared to the previous session.
1 USD / 7.12 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,546 |
-0.53 |
0.68 |
| HRC | 3,483 |
-0.20 |
0.20 |
| Rebar | 3,330 |
-0.12 |
0.42 |
| Stainless Steel | 13,640 |
0.59 |
0.99 |
| Iron Ore | 755 |
-0.26 |
1.19 |
| Coke | 1,961 |
-0.61 |
0.25 |
| Coking Coal | 1,337 |
-0.37 |
0.64 |
