Iron ore futures extended gains on Thursday, supported by firm near-term steel demand in China. Chinese steel mills continued to maintain production levels amid steady downstream steel demand in the domestic market, supporting iron ore consumption and futures sentiment.
Market sources noted that strong Chinese semi-finished steel exports seen in recent weeks, driven by raw material shortages in several countries due to logistics disruptions linked to Middle East tensions, have continued to support finished steel prices.
Market sentiment was additionally supported by reports that the U.S. and Iran are exploring options to end the conflict and reopen the Strait of Hormuz.
However, analysts said rising raw material prices have slowed spot market buying activity, while futures market movements remained mixed, with most contracts showing only marginal gains or declines compared to the previous morning session.
In the longer term, iron ore markets continue to face pressure from high port inventories in China and increasing global supply. Rising protectionist measures against Chinese steel exports may also affect export momentum following record shipment levels last year.
On the Dalian Commodity Exchange, the most-traded September iron ore contract increased by 0.62pct to 817 yuan (USD 120.1) per ton. Coking coal and coke futures declined by 0.5pct and 0.4pct to 1,304 yuan (USD 192) and 1,860 yuan (USD 273) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures rose by 0.83pct to 3,273 yuan (USD 481) per ton, while HRC futures increased by 0.55pct to 3,492 yuan (USD 513) per ton. Wire rod futures edged up to 3,412 yuan (USD 502) per ton, while stainless steel futures declined by 0.48pct to 15,620 yuan (USD 2,297) per ton.
1 USD / 6.8 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,412.00 | ▲ 0.06 | ▲ 0.94 |
| Hot Rolled Coils | 3,492.00 | ▲ 0.55 | ▼ -0.03 |
| Rebar | 3,273.00 | ▲ 0.83 | ▲ 0.27 |
| Stainless Steel | 15,620.00 | ▼ -0.48 | ▼ -1.02 |
| Iron ore | 817.00 | ▲ 0.62 | ▲ 0.12 |
| Coke | 1,860.00 | ▼ -0.40 | ▼ -1.05 |
| Coking Coal | 1,304.00 | ▼ -0.50 | ▼ -0.73 |