Iron ore futures declined on Tuesday as sluggish demand and rising supply weighed on market sentiment.
Recent data from the China Iron and Steel Association (CISA) showed that average daily crude steel output at member mills fell to 1.992 mln tons in late March, down 1.7pct from mid-March and 6.2pct YoY, indicating demand has yet to gain momentum.
High iron ore inventories at major Chinese ports, alongside increased shipments from major iron ore exporters, added further pressure on prices.
Losses were partly limited by stable finished steel demand. CISA data showed inventories of major finished steel products in key Chinese cities declined as of March 31 compared with March 20.
Market participants said domestic steel conditions remain largely unchanged, with limited upside drivers. A recent rise in prices has slowed demand growth, while uncertainty over exports, linked to the Middle East conflict, has also weighed on sentiment.
On the Dalian Commodity Exchange, the most-traded May iron ore contract fell 0.44pct to 797.5 yuan (USD 116.2) per ton. Coking coal and coke futures declined by 1.16pct and 0.72pct to 1,108.5 yuan (USD 162) and 1,662 yuan (USD 242) per ton, respectively.
On the Shanghai Futures Exchange, the most-traded rebar contract eased 0.42pct to 3,115 yuan (USD 454) per ton, while HRC fell 0.37pct to 3,275 yuan (USD 477). Wire rod declined 0.39pct to 3,304 yuan (USD 482), and stainless steel slipped 0.11pct to 14,160 yuan (USD 2,064) per ton.
1 USD / 6.86 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,304.00 | ▼ -0.39 | ▼ -0.54 |
| Hot Rolled Coils | 3,275.00 | ▼ -0.37 | ▲ 0.31 |
| Rebar | 3,115.00 | ▼ -0.42 | ▲ 0.58 |
| Stainless Steel | 14,160.00 | ▼ -0.11 | ▼ -0.46 |
| Iron ore | 797.50 | ▼ -0.44 | ▼ -0.25 |
| Coke | 1,662.00 | ▼ -0.72 | ▼ -0.48 |
| Coking Coal | 1,108.50 | ▼ -1.16 | ▼ -0.36 |
