Iron ore futures extended gains for the third consecutive session on Wednesday, driven by expectations of economic stimulus. However, gains were capped by concerns over demand.
Following Shanghai’s recent relaxation of real estate policies, removing the distinction between ordinary and non-ordinary housing and expanding tax incentives for property transactions, Beijing and Shenzhen also announced plans to implement housing sector incentives starting next month.
The Chinese government has introduced several measures to revitalize the housing market, a key steel consumer. These include cutting mortgage rates, lowering down payment requirements, and relaxing purchase restrictions to support the struggling property sector.
Despite these supportive measures, higher portside iron ore inventories and weakening steel demand, driven by the traditional winter slowdown, are expected to limit upward price momentum.
On the Dalian Commodity Exchange, iron ore futures rose by 1.11pct to 774.5 yuan (USD 106.9) per ton. Coke prices declined by 0.54pct to 1,918.5 yuan (USD 265), while coking coal saw a slight increase of 0.12pct to 1,282.5 yuan (USD 177).
In the Shanghai Futures Exchange, rebar futures increased by 0.85pct to 3,319 yuan (USD 458) per ton, and HRC futures edged up 0.4pct to 3,489 yuan (USD 482). Wire rod prices rose by 0.36pct to 3,595 yuan (USD 497), and stainless steel gained 0.3pct to 13,340 yuan (USD 1,843).
However, most steelmaking raw materials and steel futures, with the exception of stainless steel, registered losses compared to the previous morning session.
1 USD / 7.23 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,595 |
0.36 |
-0.31 |
| HRC | 3,489 |
0.40 |
-0.17 |
| Rebar | 3,319 |
0.85 |
-0.09 |
| Stainless Steel | 13,340 |
0.30 |
0.07 |
| Iron Ore | 774.5 |
1.11 |
-0.19 |
| Coke | 1,918.5 |
-0.54 |
-1.36 |
| Coking Coal | 1,282.5 |
0.12 |
-0.82 |
