Iron ore futures recorded gains on Thursday, driven by the anticipation of additional stimulus measures aimed at bolstering the country’s post-COVID economic recovery. However, concerns persist regarding the demand outlook due to steel production curbs and weak steel demand.
In late June, daily crude steel output recorded a decline of 0.74 pct compared to mid-June 2023.
Weak steel demand remained a concern, as inventories of major finished steel products held by Chinese stockists continued to increase for a second consecutive week. The seasonal slowdown, coupled with extreme weather conditions in the country, contributed to the dampening effect on steel demand.
Despite these challenges, the September contract for iron ore on the Dalian Commodity Exchange experienced a 0.97 pct rise, settling at 829.5 yuan (USD 114.5) per ton. Additionally, Dalian coke and coking coal futures saw increases of 2.05 pct and 1.75 pct, reaching 2,120 yuan (USD 293) per ton and 1,338 yuan (USD 185) per ton, respectively.
Rebar and HRC futures remained relatively stable at 3,758 yuan (USD 519) per ton and 3,850 yuan (USD 532) per ton, respectively. However, wire rod futures extended their losses, decreasing by 0.9 pct and reaching 4,195 yuan (USD 579) per ton. On the other hand, stainless steel futures witnessed a growth of 0.68 pct, reaching 14,850 yuan (USD 2,050) per ton.
1 USD / 7.24 yuan
