Iron ore futures climbed on Monday, driven by expectations of firm near-term demand. Market insiders report that Chinese steel mills have begun pre-holiday restocking ahead of the Chinese New Year holiday starting January 28. The pace of restocking is anticipated to accelerate, potentially bolstering iron ore demand.
Despite this optimism, concerns persist over higher port-side inventories, reduced steel production, weak profit margins for steel mills, and seasonally softer demand during the winter months, all of which weigh on the iron ore demand outlook.
On the Dalian Commodity Exchange, iron ore futures rose 0.84pct to 780 yuan (USD 106.8) per ton. Coke futures edged up 0.14pct to 1,825 yuan (USD 259), while coking coal futures slipped 0.17pct to 1,155.5 yuan (USD 158) per ton.
In the Shanghai Futures Exchange, rebar futures gained 0.21pct to 3,290 yuan (USD 451) per ton, and HRC futures increased by 0.09pct to 3,418 yuan (USD 468) per ton. Conversely, wire rod futures dipped 0.25pct to 3,532 yuan (USD 484) per ton. Stainless steel futures led the gains, rising 1.28pct to 13,035 yuan (USD 1,786) per ton.
1 USD / 7.29 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,532 |
-0.25 |
-0.48 |
| HRC | 3,418 |
0.09 |
0.23 |
| Rebar | 3,290 |
0.21 |
0.33 |
| Stainless Steel | 13,035 |
1.28 |
1.07 |
| Iron Ore | 780 |
0.84 |
1.41 |
| Coke | 1,825 |
0.14 |
0.27 |
| Coking Coal | 1,155.5 |
-0.17 |
-0.43 |
