Iron ore futures fell on Friday due to demand uncertainties and the lack of detailed Chinese stimulus measures, which weighed heavily on market sentiment.
Adding to the bearish outlook, port-side iron ore inventories continued to rise on a weekly basis, reaching record levels. Environmental restrictions on heavy industries, including steel production, in some provinces further dampened sentiment.
The annual Central Economic Work Conference, chaired by Chinese President Xi Jinping, emphasized proactive fiscal policies, including increasing the fiscal deficit and issuing more ultra-long bonds in the coming year. However, the conference did not provide specifics on new stimulus initiatives.
On the Dalian Commodity Exchange, iron ore futures dropped 1.12pct to 797 yuan (USD 109.6) per ton. Coke and coking coal futures also fell, declining 3.12pct and 2.15pct to 1,835 yuan (USD 252) and 1,159 yuan (USD 159) per ton, respectively.
Similarly, on the Shanghai Futures Exchange, rebar futures decreased 1.73pct to 3,360 yuan (USD 462) per ton, while HRC futures slipped 1.88pct to 3,491 yuan (USD 480) per ton. Wire rod futures were down 1.29pct to 3,587 yuan (USD 494) per ton, and stainless steel futures edged 0.57pct lower to 13,065 yuan (USD 1,798) per ton.
1 USD / 7.26 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,587 |
-1.29 |
-1.28 |
| HRC | 3,491 |
-1.88 |
-2.03 |
| Rebar | 3,360 |
-1.73 |
-2.02 |
| Stainless Steel | 13,065 |
-0.57 |
-0.80 |
| Iron Ore | 797 |
-1.12 |
-2.70 |
| Coke | 1,835 |
-3.12 |
-3.76 |
| Coking Coal | 1,159 |
-2.15 |
-3.11 |
