Iron ore futures extended gains on Wednesday, driven by cautious optimism over improving steel demand and expectations of stimulus measures.
China’s iron ore imports are expected to be impacted by recent supply disruptions in Australia caused by a cyclone. While this has provided some support to the market, analysts believe the effect will be limited, as iron ore supplies are likely to recover in the near future.
Rising steel output and hopes for further stimulus ahead of next month’s Beijing meeting, when the 14th National People’s Congress convenes its annual session, also contributed to the market’s strength.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 1.48pct to 820.5 yuan (USD 112.8) per ton. Coke and coking coal futures saw mixed movements, with coke futures up 0.21pct to 1,697.5 yuan (USD 233), while coking coal futures dipped slightly by 0.05pct to 1,086 yuan (USD 149) per ton.
In Shanghai Futures Exchange, rebar futures increased by 0.32pct to 3,313 yuan (USD 456) per ton, and HRC futures gained 0.48pct to 3,430 yuan (USD 472) per ton, though they remained unchanged from the previous morning session’s close. Wire rod futures edged down 0.17pct to 3,523 yuan (USD 485) per ton, while stainless steel futures rose 0.54pct to 13,125 yuan (USD 1,805) 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 | 3,523 |
-0.17 |
-0.26 |
| HRC | 3,430 |
0.32 |
0 |
| Rebar | 3,315 |
0.48 |
0.06 |
| Stainless Steel | 13,125 |
0.54 |
0.46 |
| Iron Ore | 820.5 |
1.48 |
0.30 |
| Coke | 1,697.5 |
0.21 |
-0.38 |
| Coking Coal | 1,086 |
-0.05 |
-0.78 |
