Iron ore futures extended their gains on Tuesday, bolstered by expectations of additional stimulus from Beijing.
China plans to introduce various measures to counter the effects of anticipated U.S. tariffs and a continuing downturn in the housing market, according to Goldman Sachs. The investment bank predicts that the Chinese government will implement further monetary and fiscal easing, along with support for the housing sector.
On Monday, China’s central bank pledged to use supportive monetary tools and measures to mitigate risks in the property market. Lower iron ore shipments from major miners and strong steel export data also contributed to the positive market sentiment.
Despite this momentum, the outlook for iron ore demand remains uncertain due to high port-side inventory and increasing trade tensions from various countries in response to strong Chinese exports last year.
On the Dalian Commodity Exchange, iron ore futures rose by 2.22pct to 783 yuan (USD 106.7) per ton. Coke and coking coal futures also posted gains, increasing by 0.9pct and 2.03pct to 1,730.5 yuan (USD 236) and 1,129.5 yuan (USD 154) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures increased by 1.48pct to 3,283 yuan (USD 448) per ton, and HRC futures grew by 1.94pct to 3,409 yuan (USD 465) per ton. Wire rod futures rose by 1.24pct to 3,590 yuan (USD 490) per ton, while stainless steel futures edged down by 0.19pct to 13,185 yuan (USD 1,798) per ton.
1 USD / 7.33 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,590 |
1.24 |
1.17 |
| HRC | 3,409 |
1.94 |
1.53 |
| Rebar | 3,283 |
1.48 |
1.04 |
| Stainless Steel | 13,185 |
-0.19 |
-0.49 |
| Iron Ore | 783 |
2.22 |
1.85 |
| Coke | 1,730.5 |
0.90 |
0.32 |
| Coking Coal | 1,129.5 |
2.03 |
0.89 |
