Iron ore and steel futures markets remained subdued on Wednesday due to persistent weak fundamentals.
Major steel producer Baosteel decreased HRC prices by 100 yuan per ton for August sales in the domestic market, reflecting weak steel demand in the country. Additionally, higher port-side inventory of iron ore and rising steel inventory at major Chinese warehouses weighed on market sentiments.
The market is pinning hopes on stimulus measures from a key government meeting in mid-July, but several analysts believe the gains will likely have a limited impact on the steel sector.
On the Dalian Commodity Exchange, iron ore futures for September delivery decreased by 1.81pct to 813 yuan (USD 111.7) per ton. Dalian coke and coking coal futures also decreased by 1.05pct and 1.95pct, respectively, to 2,215 yuan (USD 304) and 1,531 yuan (USD 210) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures dropped by 0.91pct to 3,478 yuan (USD 478) per ton. HRC futures decreased by 0.73pct to 3,681 yuan (USD 506) per ton. Wire rod futures fell by 0.81pct to 3,660 yuan (USD 503) per ton, and stainless steel futures dropped by 1.35pct to 13,930 yuan (USD 1,915) 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 | 3,660 |
-0.81 |
-0.79 |
| HRC | 3,681 |
-0.73 |
-0.81 |
| Rebar | 3,478 |
-0.91 |
-1.06 |
| Stainless Steel | 13,930 |
-1.35 |
-0.57 |
| Iron Ore | 813 |
-1.81 |
-2.58 |
| Coke | 2,215 |
-1.05 |
-1.24 |
| Coking Coal | 1,531 |
-1.95 |
-2.09 |
