Iron ore futures edged higher on Thursday, supported by restocking demand despite lingering uncertainty about demand.
Steel mills have started replenishing inventories ahead of potential winter disruptions and the February holiday, lending some support to iron ore prices. However, the market continues to face pressure from high port inventories and weakening steel demand, which remain significant headwinds for the key steelmaking raw material.
Analysts warned that without additional stimulus measures, the market may struggle to sustain its upward momentum as demand fundamentals are expected to weaken further with the onset of winter.
Reflecting sluggish construction steel demand, China’s Shagang Group reduced long steel prices by USD 21 per ton for sales between November 21 and 30. However, market insiders reported relatively better demand for flat steel products.
On the Dalian Commodity Exchange, iron ore futures rose 0.39pct to 777.5 yuan (USD 107.3) per ton, while coke and coking coal futures surged 1.87pct and 2.97pct to 1,962 yuan (USD 271) and 1,316.5 yuan (USD 182) per ton, respectively.
In the Shanghai Futures Exchange, rebar futures increased 0.51pct to 3,332 yuan (USD 460) per ton, HRC futures climbed 0.29pct to 3,497 yuan (USD 483) per ton, wire rod rose 0.58pct to 3,619 yuan (USD 500) per ton, and stainless steel gained 0.34pct to 13,355 yuan (USD 1,844) per ton.
1 USD / 7.24 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,619 |
0.58 |
0.66 |
| HRC | 3,947 |
0.29 |
0.23 |
| Rebar | 3,332 |
0.51 |
0.39 |
| Stainless Steel | 13,355 |
0.34 |
0.11 |
| Iron Ore | 777.5 |
0.39 |
0.39 |
| Coke | 1,962 |
1.87 |
2.22 |
| Coking Coal | 1,316.5 |
2.97 |
2.58 |
