Iron ore futures declined on Thursday as concerns over weaker steel demand continued to weigh on market sentiment.
Some Chinese steel traders said that domestic steel demand remains relatively stable, though rising steel production levels are increasing supply pressure and gradually pushing inventory levels higher. In its latest monthly report, the China Iron & Steel Association (CISA) also stated that the domestic steel market is expected to remain under pressure during the seasonal slowdown period.
Higher portside iron ore inventories and rising supply levels also continued to pressure iron ore prices.
However, some analysts believe iron ore demand may remain relatively resilient in the near term as Chinese steel mills continue operating at high production levels. However, they noted that sustained declines in finished steel prices could eventually pressure mill margins, potentially leading to lower steel output and weaker iron ore consumption.
On the Dalian Commodity Exchange, the most-traded September iron ore contract declined by 1.07pct to 789.5 yuan (USD 116) per ton. Coking coal and coke futures also fell by 1.69pct and 1.1pct to 1,190.5 yuan (USD 175) and 1,755 yuan (USD 258) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures slipped by 0.44pct to 3,175 yuan (USD 467) per ton, while HRC futures declined by 0.59pct to 3,394 yuan (USD 499) per ton. Wire rod futures rose by 0.12pct to 3,360 yuan (USD 494) per ton, while stainless steel futures remained nearly unchanged at 14,790 yuan (USD 2,175) per ton.
1 USD / 6.8 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,360.00 | ▲ 0.12 | ▲ 0.33 |
| Hot Rolled Coils | 3,394.00 | ▼ -0.59 | ▼ -0.71 |
| Rebar | 3,175.00 | ▼ -0.44 | ▼ -0.44 |
| Stainless Steel | 14,790.00 | ▲ 0.03 | ▼ -0.74 |
| Iron ore | 789.50 | ▼ -1.07 | ▼ -1.33 |
| Coke | 1,755.00 | ▼ -1.10 | ▼ -1.54 |
| Coking Coal | 1,190.50 | ▼ -1.69 | ▼ -2.31 |