Iron ore futures rose on Tuesday, supported by optimism for additional stimulus measures from Beijing, though demand concerns continued to weigh on the market.
Chinese Premier Li Qiang expressed confidence in meeting the country’s economic goals this year, indicating that further policy measures could be implemented to reach the 2024 growth target of 5pct. In recent months, Beijing has rolled out a series of initiatives to spur economic growth, with the market now anticipating more measures from this week’s Standing Committee meeting of the National People’s Congress (NPC).
However, some analysts are cautious about the potential impact of these expected fiscal policies on steel demand, noting that any funds released are likely to focus on debt restructuring rather than direct infrastructure investment.
Steel market fundamentals remain weak, adding to concerns about iron ore and steel demand, especially as port-side iron ore inventories rise and a seasonal slowdown is anticipated for the winter months.
On the Dalian Commodity Exchange, the most-traded iron ore contract gained 2.53pct, reaching 791 yuan (USD 111.3) per ton. Coke and coking coal futures also rose, up 1.97pct and 1.57pct to 2,047 yuan (USD 288) and 1,358 yuan (USD 191) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures increased by 1.3pct to 3,433 yuan (USD 483) per ton, HRC futures climbed 1.07pct to 3,591 yuan (USD 506), and wire rod futures edged up 0.33pct to 3,663 yuan (USD 516). Stainless steel futures, however, slipped 0.26pct to 13,675 yuan (USD 1,926) per ton.
1 USD / 7.1 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,663 |
0.33 |
-0.46 |
| HRC | 3,591 |
1.07 |
0.19 |
| Rebar | 3,433 |
1.30 |
0.23 |
| Stainless Steel | 13,675 |
-0.26 |
0.91 |
| Iron Ore | 791 |
2.53 |
1.52 |
| Coke | 2,047 |
1.97 |
-0.20 |
| Coking Coal | 1,358 |
1.57 |
-0.59 |
