Dalian iron ore futures fell slightly on Wednesday as weak demand fundamentals overshadowed stimulus hopes prompted by recent manufacturing data.
China’s manufacturing activity continued its decline for the third consecutive month in July, fueling expectations for potential government policy measures to boost the economy. However, analysts remain skeptical about the likelihood of significant stimulus.
China’s Purchasing Managers’ Index (PMI) for the steel industry also dropped for the second month in a row, falling by 5.3 points to 42.5 in July, according to the CFLP Steel Logistics Professional Committee (CSLPC). This decline is attributed to a seasonal slowdown in steel demand.
On the Dalian Commodity Exchange, September iron ore futures edged down by 0.13pct to 768 yuan (USD 105.8) per ton. Dalian coke futures fell by 0.51pct to 2,036.5 yuan (USD 281) per ton, while coking coal futures increased slightly by 0.03pct to 1,461.5 yuan (USD 201) per ton.
On the Shanghai Futures Exchange, rebar futures dropped by 0.54pct to 3,326 yuan (USD 458) per ton and HRC futures decreased by 0.26pct to 3,479 yuan (USD 480) per ton. Conversely, wire rod futures rose by 0.75pct to 3,340 yuan (USD 460) per ton, and stainless steel futures increased by 0.82pct to 14,080 yuan (USD 1,941) per ton.
Despite these movements, steel-related raw materials and futures generally showed gains compared to the previous 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 | 3,340 |
0.75 |
1.38 |
| HRC | 3,479 |
-0.26 |
0.89 |
| Rebar | 3,326 |
-0.54 |
0.75 |
| Stainless Steel | 14,080 |
0.82 |
1.24 |
| Iron Ore | 768 |
-0.13 |
1.56 |
| Coke | 2,036.5 |
-0.51 |
0.71 |
| Coking Coal | 1,461.5 |
0.03 |
1.03 |
