Iron ore futures fell on Friday as weak fundamentals weighed on market sentiment.
Chinese steel mills faced pressure from weak margins, leading to output cuts that further darkened the demand outlook for iron ore. Despite a slight weekly decline, iron ore inventories at Chinese ports remained elevated. The demand outlook was further dampened after Beijing announced the temporary suspension of a mechanism that could limit long-term steel capacity expansion.
However, iron ore futures posted a weekly gain, supported by measures announced earlier this week to aid the troubled property sector and a decline in finished steel inventories at major Chinese warehouses. Improved weather conditions also raised hopes for a near-term boost in steel demand.
On the Dalian Commodity Exchange, the most-traded iron ore futures contract decreased by 2.24pct to 719.5 yuan (USD 100.7) per ton. Dalian coke and coking coal futures dropped by 3.08pct and 3.35pct, respectively, to 1,889 yuan (USD 265) and 1,314 yuan (USD 184) per ton.
On the Shanghai Futures Exchange, rebar futures fell 1.56pct to 3,154 yuan (USD 442) per ton, HRC futures dropped 1.86pct to 3,219 yuan (USD 451) per ton, and wire rod futures decreased by 1.75pct to 3,150 yuan (USD 441) per ton. Stainless steel futures also edged down 0.29pct to 13,730 yuan (USD 1,923) per ton.
1 USD / 7.14 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,150 |
-1.75 |
-0.79 |
| HRC | 3,219 |
-1.86 |
-0.87 |
| Rebar | 3,154 |
-1.56 |
-0.63 |
| Stainless Steel | 13,730 |
-0.29 |
0.15 |
| Iron Ore | 719.5 |
-2.24 |
-1.46 |
| Coke | 1,889 |
-3.08 |
-1.80 |
| Coking Coal | 1,314 |
-3.35 |
-2.25 |
