Iron ore futures continued their upward trend on Thursday, driven by recent property-supportive measures, though long-term demand concerns remain.
The National Financial Regulatory Administration (NFRA) reported that China’s commercial banks have approved financing for 5,392 real estate “white list” projects, amounting to nearly 1.4 trillion yuan (USD 196.2 bln). Additionally, China is considering allowing local governments to use special bonds, currently limited to infrastructure and environmental projects, to purchase unsold homes.
However, concerns over long-term iron ore demand persist due to rising port-side inventories and the weak profitability of steel mills, which could lead to reduced steel production this year.
Reflecting these challenges, major Chinese steel producer Shagang reduced prices by USD 14 per ton for long steel products for sales from August 21-31.
On the Dalian Commodity Exchange, the most-traded iron ore futures contract gained 0.41pct to reach 730 yuan (USD 102.3) per ton. In contrast, coke and coking coal futures fell by 0.44pct and 0.78pct, respectively, to 1,923 yuan (USD 270) and 1,343.5 yuan (USD 188) per ton.
Meanwhile, steel futures declined across the board after sharp gains the previous day. On the Shanghai Futures Exchange, rebar futures fell 0.69pct to 3,174 yuan (USD 445) per ton, HRC futures dropped 0.55pct to 3,247 yuan (USD 455) per ton, and wire rod futures decreased 1.64pct to 3,175 yuan (USD 445) per ton. Stainless steel futures also edged down 0.36pct to 13,710 yuan (USD 1,922) per ton.
1 USD / 7.13 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,175 |
-1.64 |
-2.20 |
| HRC | 3,247 |
-0.55 |
-2.00 |
| Rebar | 3,174 |
-0.69 |
-1.92 |
| Stainless Steel | 13,710 |
-0.36 |
-0.84 |
| Iron Ore | 730 |
0.41 |
-1.64 |
| Coke | 1,923 |
-0.44 |
0.10 |
| Coking Coal | 1,343.5 |
-0.78 |
-2.16 |
