Iron ore futures fell on Thursday as the market remained cautious amid a mixed demand outlook. However, hopes for further stimulus and strong manufacturing data helped limit losses.
High iron ore port inventories and increased imports are expected to pressure prices, while weak margins at steel mills and recent environmental-related production curbs in major steel hub, Tangshan have raised concerns about demand.
China’s manufacturing purchasing managers’ index (PMI), which measures activity in the sector, rose to 50.1 in October, marking a shift back into expansion territory from 49.8 in September, its first increase since April. The National Bureau of Statistics (NBS) attributed this growth to new pro-growth policies and the gradual impact of existing economic measures, reflecting an improvement in economic sentiment.
China’s parliament standing committee is set to meet next week, and further details on fiscal stimulus measures are anticipated after the session concludes on Nov. 8.
On the Dalian Commodity Exchange, the most-traded iron ore contract dropped 0.38pct to 781.5 yuan (USD 109.6) per ton. Coke and coking coal futures also declined, down 1.29pct to 2,028 yuan (USD 285) per ton and 1.38pct to 1,362 yuan (USD 191) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures dipped 0.35pct to 3,427 yuan (USD 481) per ton. HRC futures edged down 0.14pct to 3,587 yuan (USD 503) per ton, wire rod futures fell 1.37pct to 3,677 yuan (USD 516) per ton, and stainless steel futures dropped 0.73pct to 13,510 yuan (USD 1,896) 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 | 3,677 |
-1.37 |
-1.33 |
| HRC | 3,587 |
-0.14 |
-0.03 |
| Rebar | 3,427 |
-0.35 |
-0.44 |
| Stainless Steel | 13,510 |
-0.73 |
-1.00 |
| Iron Ore | 781.5 |
-0.38 |
-0.51 |
| Coke | 2,028 |
-1.29 |
-0.99 |
| Coking Coal | 1,362 |
-1.38 |
-1.14 |
