Iron ore futures extended losses on Wednesday, as market sentiments remained negative despite improved economic data.
China’s factory price deflation eased slightly, and the consumer price index increased marginally, according to official data. Despite several rounds of support measures, weak consumption in China has kept a lid on consumer prices since 2023, as confidence remains low amid a prolonged property sector crisis. Analysts suggest that more fiscal and monetary stimulus steps are required to sustainably drive up demand.
Higher portside stockpiles, weak steel mill margins, and a seasonal slowdown in steel demand continued to weigh on market sentiments despite the improved economic data.
On the Dalian Commodity Exchange, iron ore futures for September delivery fell by 0.92pct to 810.5 yuan (USD 111.7) per ton, although this marked a 0.56pct rise compared to the previous morning session.
Coke and coking coal futures posted gains, increasing by 0.97pct and 1.21pct respectively, settling at 2,236 yuan (USD 308) per ton and 1,628 yuan (USD 225) per ton.
Meanwhile, on the Shanghai Futures Exchange, steel futures were mostly range-bound. Rebar futures edged lower by 0.11pct to 3,608 yuan (USD 498) per ton, HRC futures were almost unchanged at 3,774 yuan (USD 520) per ton, wire rod futures fell slightly by 0.18pct to 3,853 yuan (USD 531) per ton, and stainless steel futures remained nearly flat at 14,120 yuan (USD 1,947) per ton. All steel futures posted gains compared to yesterday’s morning session.
1 USD / 7.25 yuan
| Material | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
| Wire Rod | 3,843 | -1.44 | -1.38 |
| HRC | 3,766 | -1.62 | -1.25 |
| Rebar | 3,597 | -1.77 | -1.61 |
| Stainless Steel | 14,100 | -1.16 | -0.99 |
| Iron Ore | 806 | -4.16 | -4.16 |
| Coke | 2,201.5 | -2.85 | -2.29 |
| Coking Coal | 1,602.5 | -2.70 | -2.15 |
