Iron ore futures declined on Wednesday as concerns over weakening steel demand continued to weigh on market sentiment.
The outlook for iron ore remained under pressure amid expectations of slower steel consumption during the summer season. The softer demand environment has also weighed on long steel prices.
Market insiders noted that despite relatively high steel production levels, demand has not kept pace, putting pressure on finished steel prices. Chinese steel traders said buyers remain reluctant to accept higher prices due to the lack of strong market drivers.
The longer-term outlook for iron ore remains bearish, with high port inventories and increasing global supply expected to continue weighing on prices.
Market sentiment was also affected by renewed tensions involving the United States and Iran, adding uncertainty to the outlook for the steel sector and broader commodity markets.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 0.57pct to 780 yuan (USD 115.2) per ton. Coking coal and coke futures extended gains, rising 0.95pct and 0.73pct to 1,381.5 yuan (USD 204) per ton and 2,000 yuan (USD 296) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures declined 0.25pct to 3,169 yuan (USD 468) per ton, while HRC futures fell 0.35pct to 3,386 yuan (USD 500) per ton. Wire rod futures dropped 0.56pct to 3,361 yuan (USD 497) per ton, whereas stainless steel futures edged up 0.17pct to 15,025 yuan (USD 2,220) per ton.
1 USD / 6.76 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,361.00 | ▼ -0.56 | ▲ 0.30 |
| Hot Rolled Coils | 3,386.00 | ▼ -0.35 | ▼ -0.38 |
| Rebar | 3,169.00 | ▼ -0.25 | ▼ -0.35 |
| Stainless Steel | 15,025.00 | ▲ 0.17 | ▼ -0.27 |
| Iron ore | 780.00 | ▼ -0.57 | ▼ -0.83 |
| Coke | 2,000.00 | ▲ 0.73 | ▲ 1.05 |
| Coking Coal | 1,381.50 | ▲ 0.95 | ▲ 1.38 |