Iron ore futures declined on Thursday amid a weakening outlook and continued supply-side pressure.
Higher shipments from major iron ore suppliers, along with high inventories at Chinese ports, remain key headwinds. Market participants also pointed to expectations of a potential long-term agreement between China’s state-backed iron ore buyer and BHP, which could further increase supply and weigh on prices.
Although steel production has improved in recent weeks, Chinese steel mills are facing margin pressure, which may limit further output growth and, in turn, iron ore demand.
Chinese steel traders said domestic steel prices declined in the spot market, though trading activity improved following the drop. Export activity remains sensitive to logistics disruptions linked to uncertainties in the Middle East. Several vessels carrying steel cargoes to GCC-based clients in recent weeks have reportedly been delayed, stranded at sea or diverted to alternative destinations, leading to disputes between mills, suppliers and buyers.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 2.53pct to 750 yuan (USD 109.7) per ton, replacing the May contract as the most active. Coking coal and coke futures declined 3.19pct and 0.66pct to 1,077.5 yuan (USD 158) and 1,661.5 yuan (USD 243) per ton, respectively.
On the Shanghai Futures Exchange, the most-traded rebar contract eased 0.42pct to 3,096 yuan (USD 453) per ton, while HRC fell 0.15pct to 3,270 yuan (USD 478). Wire rod edged up to 3,265 yuan (USD 478), and stainless steel rose 0.39pct to 14,290 yuan (USD 2,091) per ton.
1 USD / 6.83 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,265.00 | ▲ 0.03 | ▼ -0.28 |
| Hot Rolled Coils | 3,270.00 | ▼ -0.15 | ▼ -0.37 |
| Rebar | 3,096.00 | ▼ -0.42 | ▼ -0.58 |
| Stainless Steel | 14,290.00 | ▲ 0.39 | ▼ -0.14 |
| Iron ore | 750.00 | ▼ -2.53 | ▼ -5.20 |
| Coke | 1,661.50 | ▼ -0.66 | ▼ -1.59 |
| Coking Coal | 1,077.00 | ▼ -3.19 | ▼ -4.04 |
