Iron ore futures declined on Friday amid a clouded demand outlook, despite encouraging private PMI data and expectations for further economic stimulus.
Rising port-side iron ore inventories and seasonal slowdown in steel demand during the winter remain key headwinds for iron ore. Additionally, increased protectionist measures against Chinese steel products may impact Chinese steel exports and production in 2025, according to a note from Goldman Sachs
China’s manufacturing sector showed signs of recovery in October, rebounding after contracting the previous month. The Caixin China General Manufacturing Purchasing Managers’ Index (PMI) climbed to 50.3 from September’s 49.3, indicating the strongest growth in output and new orders since June. A PMI above 50 signals expansion, while a reading below 50 indicates contraction.
The market is also anticipating potential stimulus announcements at the upcoming National People’s Congress next week.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell by 1.47pct to 770.5 yuan (USD 108.2) per ton, but still posted a 0.65pct gain for the week. Coke and coking coal futures also decreased, down 1.46pct to 1,996.5 yuan (USD 280) per ton and 1.33pct to 1,337 yuan (USD 188) per ton, respectively.
In Shanghai Futures Exchange, rebar futures dropped 1.19pct to 3,393 yuan (USD 477) per ton, HRC futures fell 0.89pct to 3,559 yuan (USD 500) per ton, and wire rod futures slid 1.67pct to 3,644 yuan (USD 512) per ton. Stainless steel futures edged down 0.11pct to 13,545 yuan (USD 1,902) 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 | 3,622 |
-2.27 |
-1.52 |
| HRC | 3,559 |
-0.89 |
-0.79 |
| Rebar | 3,393 |
-1.19 |
-1.00 |
| Stainless Steel | 13,545 |
-0.11 |
0.26 |
| Iron Ore | 770.5 |
-1.47 |
-1.43 |
| Coke | 1,996.5 |
-1.46 |
-1.58 |
| Coking Coal | 1,337 |
-1.33 |
-1.87 |
