Iron ore futures extended losses on Tuesday, with weak demand fundamentals and a lack of stimulus from a key government meeting last week darkening the outlook.
China’s shaky economic recovery is hampered by weak domestic demand, persistent deflationary pressures, and a troubled property sector. Analysts note that without further stimulus measures, there is little hope for a near-term recovery in the property and construction sectors.
Additionally, higher iron ore inventory and weak downstream steel demand, exacerbated by extreme weather in parts of the country, pose significant challenges for the Chinese steel sector.
On the Dalian Commodity Exchange, iron ore futures for September delivery decreased by 3.43pct to 774.5 yuan (USD 106.5) per ton. Dalian coke and coking coal futures fell by 2.54pct and 2.44pct to 2,095 yuan (USD 288) and 1,482 yuan (USD 204) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures decreased by 1.88pct to 3,397 yuan (USD 467) per ton, HRC futures declined by 1.75pct to 3,583 yuan (USD 493) per ton, and wire rod futures fell by 1.45pct to 3,525 yuan (USD 485) per ton. In contrast, stainless steel futures extended gains, posting a 1.48pct increase to close the session at 14,035 yuan (USD 1,930) 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 | 3,525 |
-1.45 |
-1.45 |
| HRC | 3,583 |
-1.75 |
-1.42 |
| Rebar | 3,397 |
-1.88 |
-1.59 |
| Stainless Steel | 14,035 |
1.48 |
1.32 |
| Iron Ore | 774.5 |
-3.43 |
-3.10 |
| Coke | 2,095.5 |
-2.54 |
-2.08 |
| Coking Coal | 1,482 |
-2.44 |
-1.69 |
