Iron ore futures edged up on Tuesday as cautious market sentiment persisted, with weak fundamentals outweighing stimulus hopes.
Concerns over higher port-side iron ore inventories and slowing steel demand continued to cloud the outlook. Meanwhile, Chinese steel production is declining, as several mills reportedly plan maintenance during a period of weak steel prices.
The market initially drew some support from reports of supply disruptions in Australia, a major iron ore exporter, after BHP temporarily halted operations at two mines due to heavy rainfall. However, with operations now resumed, the impact on the market was minimal.
Commodity markets remain optimistic about potential improvements in macroeconomic fundamentals, bolstered by Beijing’s pledge to introduce additional measures to support the economy.
On the Dalian Commodity Exchange, iron ore futures were largely stable, inching up by 0.06pct to 796.5 yuan (USD 109.3) per ton. In contrast, coke and coking coal futures extended their losses, dropping by 1.6pct and 1.39pct, to close at 1,789 yuan (USD 246) and 1,209 yuan (USD 166) per ton, respectively.
Over on the Shanghai Futures Exchange, rebar futures rose by 0.27pct to 3,364 yuan (USD 462) per ton, while HRC futures gained 0.2pct to 3,493 yuan (USD 480) per ton. Wire rod prices slipped by 0.28pct to 3,583 yuan (USD 492) per ton, and stainless steel futures dipped marginally by 0.04pct to 12,985 yuan (USD 1,783) per ton.
1 USD / 7.28 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,583 |
-0.28 |
-0.31 |
| HRC | 3,493 |
0.20 |
0 |
| Rebar | 3,364 |
0.27 |
0.06 |
| Stainless Steel | 12,985 |
-0.04 |
-0.12 |
| Iron Ore | 796.5 |
0.06 |
-0.75 |
| Coke | 1,789 |
-1.60 |
-1.45 |
| Coking Coal | 1,209 |
-1.39 |
6.04* |
*Most active contract changes to May from January
