Iron ore and steel futures slumped on Wednesday as weak demand fundamentals continued to weigh on market sentiment. Weak steel mill margins, driven by sluggish steel demand and mounting iron ore port-side inventory, along with increased supply from major iron ore miners, have kept the demand outlook for the steel sector bearish.
The commodity markets are hoping for stimulus measures to be announced from a key government meeting ongoing this week, fueled by disappointing economic figures for Q2 2024. The meetings will end on Thursday with a broad-strokes plan outlining China’s policy direction for the next five years and beyond. However, several analysts point out that any boost may be short-term due to structural issues with the troubled property sector, which would take years to resolve.
On the Dalian Commodity Exchange, iron ore futures for September delivery decreased by 2.66pct to 805 yuan (USD 111.1) per ton. Meanwhile, Dalian coke and coking coal futures declined by 2.06pct and 0.95pct, respectively, to 2,232 yuan (USD 308) and 1,556 yuan (USD 215) per ton.
On the Shanghai Futures Exchange, rebar futures decreased by 1.52pct to 3,487 yuan (USD 482) per ton. HRC futures decreased by 1.64pct to 3,668 yuan (USD 507) per ton. Wire rod futures dropped by 1.5pct to 3,623 yuan (USD 500) per ton, while stainless steel futures decreased by 0.83pct to 13,815 yuan (USD 1,908) per ton.
1 USD / 7.24 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,623 |
-1.50 |
-1.63 |
| HRC | 3,668 |
-1.64 |
-1.72 |
| Rebar | 3,487 |
-1.52 |
-1.55 |
| Stainless Steel | 13,815 |
-0.83 |
-1.09 |
| Iron Ore | 805 |
-2.66 |
-2.36 |
| Coke | 2,232 |
-2.06 |
-2.51 |
| Coking Coal | 1,556 |
-0.95 |
-0.96 |
