Iron ore futures dropped on Friday due to diminishing expectations of broader stimulus measures.
Despite the recent slowdown in economic recovery, analysts believe the likelihood of significant stimulus is unlikely, as indicated by Goldman Sachs’ economists who noted that their clients in mainland China have “low expectations” for further economic support.
The decline in iron ore futures was accompanied by a sharp drop in steel futures, attributed to the increasing inventory of major finished steel in China, which reflects sluggish downstream demand.
The September contract for iron ore on the Dalian Commodity Exchange witnessed a 1.87pct decrease, settling at 812.5 yuan (USD 112) per ton. Similarly, Dalian coke and coking coal futures saw declines of 1.78pct and 1.28pct, reaching 2,069.5 yuan (USD 285) per ton and 1,311 yuan (USD 181) per ton, respectively.
Rebar and HRC futures also experienced declines of 2.21pct and 2.36pct respectively, settling at 3,671 yuan (USD 506) per ton and 3,766 yuan (USD 520) per ton. Wire rod futures dropped by 2.05pct to 4,119 yuan (USD 568) per ton, while stainless steel futures declined by 0.51pct to 14,745 yuan (USD 2,034) per ton.
1 USD / 7.24 yuan
