Iron ore futures edged lower on Monday, with the market consolidating after last week’s recovery as stable global supply and subdued steel demand outweighed concerns over potential disruptions from industrial action at Australia’s Port Hedland export hub.
Market insiders said iron ore fundamentals remained largely unchanged. Global iron ore shipments were broadly stable last week. Despite the escalation of strike action at Port Hedland, traders said the short-term impact on iron ore supply is expected to be limited.
Market sentiment received some support after Baosteel raised domestic flat steel prices by 50 yuan (USD 7) per ton for September sales.
China’s latest economic data also pointed to a mixed outlook. Producer price inflation slowed in July, reflecting easing commodity costs, while domestic demand remained weak despite relatively resilient manufacturing activity and exports.
On the Dalian Commodity Exchange, the most-traded September iron ore contract slipped 0.35pct to 713.5 yuan (USD 105.7) per ton. Coking coal futures rose 1.43pct to 1,273.5 yuan (USD 189) per ton, while coke futures edged 0.11pct higher to 1,865 yuan (USD 276) per ton.
On the Shanghai Futures Exchange, HRC futures eased 0.12pct to 3,235 yuan (USD 479) per ton, while rebar futures fell 0.43pct to 2,997 yuan (USD 444) per ton. Wire rod futures declined 0.67pct to 3,248 yuan (USD 481) per ton, while stainless steel futures rose 0.45pct to 14,615 yuan (USD 2,165) per ton.
1 USD / 6.75 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,248.00 | ▼ -0.67 | ▼ -0.71 |
| Hot Rolled Coils | 3,235.00 | ▼ -0.12 | ▼ -0.25 |
| Rebar | 2,997.00 | ▼ -0.43 | ▼ -0.37 |
| Stainless Steel | 14,615.00 | ▲ 0.45 | ▼ -0.34 |
| Iron ore | 713.50 | ▼ -0.35 | ▼ -0.42 |
| Coke | 1,865.00 | ▲ 0.11 | ▼ -0.19 |
| Coking Coal | 1,273.50 | ▲ 1.43 | ▲ 0.47 |