Iron ore and steel futures fell sharply on Wednesday, driven by disappointing credit data that heightened concerns about demand.
China’s bank lending dropped to its lowest level in nearly 15 years, affected by weak credit demand and seasonal factors.
The Chinese steel industry, already struggling with losses due to low steel demand, is seeing further strain as several mills reduce output, worsening the outlook for iron ore demand.
Major Chinese steel producer, Baowu Steel Group has warned that the current crisis in the steel sector is more severe than the downturns of 2008 and 2015, suggesting a bleak future for the industry.
On the Dalian Commodity Exchange, the January 2025 iron ore futures contract fell by 3.32pct to 713 yuan (USD 99.5) per ton. Coke and coal prices also declined, with coke dropping 1.85pct to 1,853 yuan (USD 259) per ton and coal falling 2.77pct to 1,316 yuan (USD 184) per ton.
On the Shanghai Futures Exchange, rebar futures decreased by 3.19pct to 3,099 yuan (USD 432) per ton, HRC futures fell 3.31pct to 3,246 yuan (USD 453) per ton, and wire rod futures dropped 3.76pct to 3,096 yuan (USD 432) per ton. Stainless steel futures also saw a decline of 0.91pct, reaching 13,565 yuan (USD 1,893) per ton.
1 USD / 7.16 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,096 |
-3.76 |
-4.20 |
| HRC | 3,246 |
-3.31 |
-2.74 |
| Rebar | 3,099 |
-3.19 |
-2.39 |
| Stainless Steel | 13,565 |
-0.91 |
-0.81 |
| Iron Ore | 713 |
-3.32 |
-3.02 |
| Coke | 1,853 |
-1.85 |
-1.89 |
| Coking Coal | 1,316 |
-2.77 |
-1.60 |
