Dalian iron ore futures continued their downward trajectory on Wednesday, as a bleak demand outlook weighed on market sentiment. Hopes for substantial stimulus measures ahead of the Chinese national holidays fizzled away, further dampening expectations.
The 5-year loan prime rate in China was reduced by 10 basis points to 4.20pct on Tuesday, falling short of the anticipated 15 basis points cut. This, coupled with the absence of significant announcements regarding a sizable stimulus package after the State Council Meeting last Friday, has raised concerns about China’s willingness to stimulate its economy, according to Tapas Strickland, National Australia Bank’s head of market economics.
The increase in iron ore shipments from Australia to China also added pressure on iron ore futures.
The September contract for iron ore on the Dalian Commodity Exchange, concluded the daytime trading session with a nearly 1pct decline, settling at 797.5 yuan (USD 111) per ton.
While coke futures experienced a slight increase of 0.12pct, reaching 2,141 yuan (USD 298) per ton, coking coal futures decreased by 0.73pct to 1,352.5 yuan (USD 188) per ton.
Rebar futures witnessed a decline of 1.58pct, settling at 3,686 yuan (USD 513.5) per ton, while HRC futures dropped by 1.38pct to 3,786 yuan (USD 527) per ton. Wire rod futures followed a similar trend, decreasing by 1.52pct to 4,160 yuan (USD 579.5) per ton. However, stainless steel futures bucked the trend with a marginal increase of 0.13pct, settling at 14,875 yuan (USD 2,072) per ton.
1 USD / 7.17 yuan
