Iron ore futures declined on Tuesday as weak property sector data cast doubt on demand recovery. However, firm steel demand and lower shipments from major iron ore miners helped limit losses.
Latest property market figures suggest a prolonged recovery for China’s struggling real estate sector, a major consumer of steel. In February, new home prices fell by 5pct YoY, following a 5.4pct decline in the previous month, despite government stimulus efforts.
Nonetheless, firm domestic demand and improved steel margins provided some support to iron ore prices. Market expectations of steady steel demand and improved profitability could drive higher steel production in the near future.
On the Dalian Commodity Exchange, the most-traded May iron ore contract slipped 0.58pct to 777 yuan (USD 107.3) per ton. Coke and coking coal futures also declined, falling 1.02pct and 1.83pct to settle at 1,605 yuan (USD 222) and 1,048.5 yuan (USD 145) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures dropped 1.33pct to 3,191 yuan (USD 441) per ton, HRC futures declined 0.88pct to 3,370 yuan (USD 466) per ton, and wire rod futures lost 0.76pct to 3,403 yuan (USD 470) per ton. Stainless steel futures also fell 1.28pct to 13,460 yuan (USD 1,860) per ton.
1 USD / 7.23 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,403 |
-0.76 |
-0.53 |
| HRC | 3,370 |
-0.88 |
-0.47 |
| Rebar | 3,191 |
-1.33 |
-0.81 |
| Stainless Steel | 13,460 |
-1.28 |
-1.41 |
| Iron Ore | 777 |
-0.58 |
-0.19 |
| Coke | 1,605 |
-1.02 |
-0.59 |
| Coking Coal | 1,048.5 |
-1.83 |
-1.24 |