Iron ore futures declined further on Friday, pressured by a weak steel demand outlook. Seasonal slowdowns in steel demand during winter added to concerns, while high port-side inventories and rising imports created additional headwinds for the market.
China’s crude steel production fell 3pct YoY to 850.7 mln tons in the first ten months of 2024, according to the National Bureau of Statistics (NBS). Despite this, steel output in October rose 2.9pct YoY to 81.8 mln tons.
The property sector also weighed on market sentiment, though policy measures from Beijing slightly eased the pace of decline. China’s new home prices fell 8.1pct YoY in October, an improvement from the 8.6pct drop in September. Property investment dropped 10.3pct in the first ten months of the year, slower than the 17.1pct decline recorded in January-September.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell by 3.09pct to 736 yuan (USD 101.6) per ton, marking a weekly decline of over 6pct. Coke and coking coal futures also weakened, declining by 1.01pct and 1.29pct to 1,902 yuan (USD 263) and 1,261 yuan (USD 174) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures dropped by 2.83pct to 3,232 yuan (USD 447) per ton, while HRC futures fell by 2.23pct to 3,420 yuan (USD 473) per ton. Wire rod futures declined by 0.36pct to 3,560 yuan (USD 492) per ton, and stainless steel futures were down by 0.49pct to 13,265 yuan (USD 1,833) 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 | 3,560 |
-0.36 |
-0.39 |
| HRC | 3,420 |
-2.23 |
-1.87 |
| Rebar | 3,232 |
-2.83 |
-2.51 |
| Stainless Steel | 13,265 |
-0.49 |
-0.26 |
| Iron Ore | 736 |
-3.09 |
-2.72 |
| Coke | 1,902 |
-1.01 |
-0.76 |
| Coking Coal | 1,261 |
-1.29 |
-0.63 |
