Iron ore prices declined on Tuesday as easing supply concerns weighed on market sentiment.
Earlier support from potential disruptions at major Australian ports due to Tropical Cyclone Narelle faded, as the impact on shipments from the Pilbara region proved limited.
Iron ore futures also came under pressure following reports that the U.S. is considering easing tensions with Iran, reducing concerns over rising freight and energy costs. This weighed on coking coal prices, adding further pressure to the ferrous complex.
High port-side inventories remained a key headwind for iron ore.
Losses, however, were capped by improving steel production and better demand in the physical market, as reported by Chinese traders.
Positive macroeconomic data also provided support. China’s manufacturing and non-manufacturing activity returned to expansion in March, driven by a post-holiday pickup in production and market activity, according to official data.
On the Dalian Commodity Exchange, the most-traded May iron ore contract fell 0.8pct to 808 yuan (USD 117) per ton. Coking coal and coke futures dropped 5.71pct and 3.13pct to 1,148.5 yuan (USD 166) and 1,701.5 yuan (USD 247) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures declined 0.48pct to 3,121 yuan (USD 452) per ton, while HRC fell 0.33pct to 3,294 yuan (USD 477). Wire rod futures dropped 2pct to 3,256 yuan (USD 472), and stainless steel futures decreased 1.29pct to 14,160 yuan (USD 2,052) per ton.
1 USD / 6.9 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,256.00 | ▼ -2.02 | ▼ -2.15 |
| Hot Rolled Coils | 3,294.00 | ▼ -0.33 | ▼ -0.43 |
| Rebar | 3,121.00 | ▼ -0.48 | ▼ -0.58 |
| Stainless Steel | 14,160.00 | ▼ -1.29 | ▼ -1.48 |
| Iron ore | 808.00 | ▼ -0.80 | ▼ -0.62 |
| Coke | 1,701.50 | ▼ -3.13 | ▼ -3.06 |
| Coking Coal | 1,148.50 | ▼ -5.71 | ▼ -5.70 |
