Iron ore futures fell on Friday as weak demand fundamentals weighed on the market, with China announcing new stimulus measures after the morning session closed.
Beijing introduced a USD 1.4 trillion debt package aimed at easing local government financing pressures and supporting economic growth. While the full impact on steelmaking raw materials and steel futures will be clearer on Monday, the measures fell short of market expectations, which had anticipated a more substantial boost.
Iron ore futures also faced downward pressure due to a buildup in port inventories and increasing iron ore imports, both of which are likely to weigh on physical market prices. Additionally, steel mills are grappling with thin profit margins, and the outlook for steel demand remains uncertain as winter approaches, a period when demand traditionally slows.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell 1.65pct to 776 yuan (USD 108.3) per ton. Coke and coking coal futures saw mixed movements: coke edged up 0.1pct to 1,989 yuan (USD 278) per ton, while coking coal slipped 0.26pct to 1,322.5 yuan (USD 185) per ton.
On the Shanghai Futures Exchange, rebar futures dropped 0.94pct to 3,367 yuan (USD 470) per ton, and HRC futures decreased 0.65pct to 3,541 yuan (USD 495). Wire rod futures declined 1.45pct to 3,613 yuan (USD 505), while stainless steel futures rose 0.63pct to 13,545 yuan (USD 1,892) per ton.
1 USD / 7.15 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,613 |
-1.45 |
-1.16 |
| HRC | 3,541 |
-0.65 |
-1.38 |
| Rebar | 3,367 |
-0.94 |
-2.05 |
| Stainless Steel | 13,545 |
0.63 |
-1.37 |
| Iron Ore | 776 |
-1.65 |
-3.03 |
| Coke | 1,989 |
0.10 |
-0.70 |
| Coking Coal | 1,322.5 |
-0.26 |
-1.32 |
