Iron ore futures fell on Wednesday as demand outlook remained uncertain, despite hopes for additional stimulus measures.
Rising iron ore inventories, increased imports from major miners, weak margins at steel mills, and concerns about seasonal demand declines are all contributing to demand worries.
A recent survey by China’s National Development and Reform Commission (NDRC) shows initial optimism about domestic steel demand from early October is fading as the country enters its seasonal winter slowdown.
The market remains hopeful, however, for further stimulus from the ongoing Standing Committee meeting of the National People’s Congress (NPC). Some analysts suggest that with U.S. President Trump’s return to office, Beijing may feel pressured to introduce a larger stimulus package, as Trump has signaled more tariffs on Chinese goods during his election campaign.
On the Dalian Commodity Exchange, the most-traded iron ore contract dropped 0.76pct to 781.5 yuan (USD 109.9) per ton. Coke and coking coal futures also fell, declining 3.88pct and 3.48pct to 1,972 yuan (USD 278) and 1,317.5 yuan (USD 185) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures were down 1.11pct to 3,392 yuan (USD 477) per ton, HRC futures fell 1pct to 3,560 yuan (USD 501), wire rod futures dropped 1.22pct to 3,633 yuan (USD 511), and stainless steel futures slipped 0.7pct to 13,425 yuan (USD 1,889) 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 | 3,633 |
-1.22 |
-0.83 |
| HRC | 3,560 |
-1.00 |
-0.87 |
| Rebar | 3,392 |
-1.11 |
-1.21 |
| Stainless Steel | 13,425 |
-0.70 |
-1.86 |
| Iron Ore | 781.5 |
-0.76 |
-1.22 |
| Coke | 1,972 |
-3.88 |
-3.80 |
| Coking Coal | 1,317.5 |
-3.48 |
-3.07 |
