Iron ore futures fell on Friday as the demand outlook remained weak, with seasonal slowdown in steel consumption continuing to pressure Chinese steel mills’ margins.
Market insiders said sluggish steel demand and rising inventories of finished steel products at major warehouses in China are reducing mill profitability. As a result, several mills are bringing forward maintenance schedules, which is expected to curb steel production and lower iron ore consumption in the coming weeks.
Although major Chinese steelmakers, including Baosteel and Angang, announced modest increases in August flat steel prices to support the market, traders said buying activity remains subdued due to adverse weather in some regions and generally weak downstream demand. Steel exports are also facing growing pressure from increasing protectionist trade measures, adding to concerns over demand.
On the supply side, weekly iron ore arrivals at Chinese ports declined, but high port inventories continued to weigh on prices.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 0.31pct to 744.5 yuan (USD 109.8) per ton. Coking coal and coke futures declined 1.78pct and 2.51pct to 1,239 yuan (USD 183) per ton and 1,865 yuan (USD 275) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures dropped 1.04pct to 3,054 yuan (USD 451) per ton, while HRC futures fell 0.64pct to 3,272 yuan (USD 483) per ton. Wire rod futures declined 0.84pct to 3,309 yuan (USD 488) per ton, and stainless steel futures eased 0.31pct to 14,260 yuan (USD 2,104) per ton.
1 USD / 6.77 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,309.00 | ▼ -0.84 | ▼ -0.63 |
| Hot Rolled Coils | 3,272.00 | ▼ -0.64 | ▼ -0.58 |
| Rebar | 3,054.00 | ▼ -1.04 | ▼ -1.08 |
| Stainless Steel | 14,260.00 | ▼ -0.31 | ▼ -0.21 |
| Iron ore | 744.50 | ▼ -0.47 | ▼ -0.94 |
| Coke | 1,865.00 | ▼ -2.51 | ▼ -2.57 |
| Coking Coal | 1,239.00 | ▼ -1.78 | ▼ -1.49 |