Iron ore futures traded within a narrow range on Wednesday as the market struggled for direction amid weak demand and hopes for supportive measures for the property sector.
Investors remain optimistic that Beijing will introduce new stimulus measures after a Bloomberg report indicated that Chinese authorities are planning to cut taxes on home purchases to support the struggling property sector, a major consumer of steel.
However, high port-side iron ore inventories continue to weigh on the market, along with shrinking profitability for steel mills and slow steel demand, which are dampening market sentiment.
On the Dalian Commodity Exchange, the most-traded iron ore contract dipped 0.2pct to 762.5 yuan (USD 105.4) per ton. Meanwhile, coke and coking coal futures rose by 0.44pct and 0.27pct, settling at 1,936 yuan (USD 268) and 1,286.5 yuan (USD 178) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures gained 0.27pct to 3,337 yuan (USD 461) per ton, and HRC futures rose 0.29pct to 3,513 yuan (USD 486) per ton. Wire rod futures increased by 0.81pct to 3,588 yuan (USD 496) per ton, while stainless steel futures declined 0.78pct to 13,395 yuan (USD 1,852) per ton.
1 USD / 7.23 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,588 |
0.81 |
0.42 |
| HRC | 3,513 |
0.29 |
-0.06 |
| Rebar | 3,337 |
0.27 |
-0.21 |
| Stainless Steel | 13,395 |
-0.78 |
-0.37 |
| Iron Ore | 762.5 |
-0.20 |
-0.46 |
| Coke | 1,936 |
0.44 |
0.34 |
| Coking Coal | 1,286.5 |
0.27 |
0.51 |
