Iron ore futures fell on Thursday as market attention shifted to demand fundamentals and growing concerns that Beijing might not deliver stronger stimulus measures.
Investor sentiment turned cautious following Chinese state media reports urging a focus on boosting consumption rather than blindly pursuing faster growth. These reports are seen as setting the tone for the upcoming China Economic Work Conference in December, where key economic targets for 2025 will be outlined. The conference holds particular importance as it coincides with the onset of the incoming Donald Trump administration, raising concerns about potential escalation in U.S.-China trade tensions.
The iron ore futures were also weighed down by higher port-side inventories, coupled with potential growth in shipments from major miners, and the traditional seasonal slowdown in steel demand during winter.
Adding to market dynamics, the Dalian Commodity Exchange announced plans to lower daily price limits for iron ore futures from 11pct to 9pct and reduce speculative trade margins from 15pct to 11pct, effective December 6. Analysts believe these changes could encourage speculative activity and increase price volatility.
On the Dalian Commodity Exchange, iron ore futures declined by 1.17pct to 800.5 yuan (USD 110) per ton. Coke and coking coal futures also dropped, by 0.96pct to 1,811 yuan (USD 249) and 2.42pct to 1,170.5 yuan (USD 161) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures fell by 1.41pct to 3,280 yuan (USD 451) per ton, while HRC futures slipped 1.53pct to 3,465 yuan (USD 476) per ton. Wire rod futures dropped 2.59pct to 3,531 yuan (USD 486) per ton, and stainless steel futures declined 2.02pct to 12,835 yuan (USD 1,765) per ton.
1 USD / 7.27 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,531 |
-2.59 |
-2.72 |
| HRC | 3,465 |
-1.53 |
-1.73 |
| Rebar | 3,280 |
-1.41 |
-1.89 |
| Stainless Steel | 12,835 |
-2.02 |
-1.44 |
| Iron Ore | 800.5 |
-1.17 |
-1.44 |
| Coke | 1,811 |
-0.96 |
-0.94 |
| Coking Coal | 1,170.5 |
-2.42 |
-2.09 |
