Iron ore futures fell on Tuesday, as rising inventory levels and weak steel demand weighed on market sentiment.
Increasing iron ore supplies from major miners, combined with already elevated port inventories, have put additional pressure on key steelmaking inputs. Furthermore, slow steel demand and shrinking margins for steel mills have added to the downward outlook for iron ore.
Market participants are, however, hoping for potential policy support from the National People’s Congress Standing Committee, which is set to convene in early November. Such support could limit the downside, but analysts caution that without structural reforms in the property sector, the steel industry is likely to face continued volatility.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell by 0.77pct to 777.5 yuan (USD 109) per ton. Coke futures dropped by 0.56pct to 2,025.5 yuan (USD 284) per ton, while coking coal fell by 1.62pct to 1,366 yuan (USD 192) per ton.
In the Shanghai Futures Exchange, rebar futures slipped by 0.44pct to 3,422 yuan (USD 480) per ton, and HRC futures declined by 0.94pct to 3,569 yuan (USD 501) per ton. Wire rod futures, however, rose by 1.09pct to 3,700 yuan (USD 519) per ton, while stainless steel futures dropped by 0.84pct to 13,620 yuan (USD 1,910) per ton.
1 USD / 7.12 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,700 |
1.09 |
-0.35 |
| HRC | 3,569 |
-0.94 |
-1.29 |
| Rebar | 3,422 |
-0.44 |
-0.85 |
| Stainless Steel | 13,620 |
-0.84 |
-0.88 |
| Iron Ore | 777.5 |
-0.77 |
-0.77 |
| Coke | 2,025.5 |
-0.56 |
-2.05 |
| Coking Coal | 1,366 |
-1.62 |
-3.18 |
