Iron ore futures slipped on Friday as cautious demand outlook weighed on market sentiment.
Earlier in the week, commodity markets had rallied, supported by easing tensions between Beijing and Washington. A decline in finished steel inventories at major Chinese warehouses also indicated firm underlying steel demand, lending some support to iron ore prices.
However, analysts warned that demand may soften in the coming months as summer typically slows construction activity, especially in a sector already grappling with a prolonged property downturn. Additionally, rising protectionist measures targeting Chinese steel exports may weigh on iron ore consumption over the longer term.
While improved mill profitability in the first quarter could encourage producers to maintain higher output, providing some price support, the overall sentiment remains cautious.
On the Dalian Commodity Exchange, the most actively traded September iron ore contract fell 0.95pct to 728 yuan (USD 100.9) per ton. Despite Friday’s drop, the contract gained 4.6pct over the week.
Coke and coking coal futures also declined, falling 1.93pct and 3.84pct to close at 1,445.5 yuan (USD 201) and 852.5 yuan (USD 118) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures dipped 1.15pct to 3,082 yuan (USD 428), while HRC futures lost 0.95pct to 3,226 yuan (USD 447). Wire rod futures declined 1.25pct to 3,394 yuan (USD 471), and stainless steel futures edged down 0.65pct to 12,965 yuan (USD 1,798) per ton.
1 USD / 7.2 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,494 |
-1.25 |
-1.06 |
| HRC | 3,226 |
-0.95 |
-1.05 |
| Rebar | 3,082 |
-1.15 |
-1.17 |
| Stainless Steel | 12,965 |
-0.65 |
-0.23 |
| Iron Ore | 728 |
-0.95 |
-1.17 |
| Coke | 1,445.5 |
-1.93 |
-1.83 |
| Coking Coal | 852.5 |
-3.84 |
-3.58 |