China’s iron ore futures edged lower on Thursday as rising coking coal and coke costs put further pressure on steel mills, while expectations of higher steel production and firmer seasonal demand provided some downside support.
Coking coal prices continued to strengthen on expectations of tighter supply. Domestic mine output remains constrained by safety inspections, while coke producers are maintaining production restrictions amid high costs and losses.
For iron ore, expectations of a recovery in steel production provided some support. However, high port inventories and continued weakness in downstream steel demand are limiting the upside.
Chinese steel traders said the domestic market remained stable, with firmer cost support and expectations of stronger demand in September gradually improving sentiment.
Rising ocean freight rates also provided some support to iron ore prices, while Typhoon Narra-related logistics disruptions continued to offer limited temporary support.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell 0.28pct to 716.5 yuan (USD 106.6) per ton. Coke futures increased 0.9pct to 2,135.5 yuan (USD 318) per ton, while coking coal futures rose 1.93pct to 1,609 yuan (USD 239) per ton.
On the Shanghai Futures Exchange, HRC futures increased 0.09pct to 3,342 yuan (USD 497) per ton, while rebar futures rose 0.59pct to 3,088 yuan (USD 459) per ton. Wire rod futures gained 1.1pct to 3,295 yuan (USD 490) per ton, while stainless steel futures declined 1.75pct to 14,015 yuan (USD 2,085) per ton.
1 USD / 6.72 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,295.00 | ▲ 1.10 | ▲ 0.12 |
| Hot Rolled Coils | 3,342.00 | ▲ 0.09 | 0.00 |
| Rebar | 3,088.00 | ▲ 0.59 | ▲ 0.39 |
| Stainless Steel | 14,015.00 | ▼ -1.75 | ▼ -1.50 |
| Iron ore | 716.50 | ▼ -0.28 | ▼ -0.49 |
| Coke | 2,135.50 | ▲ 0.90 | ▲ 1.22 |
| Coking Coal | 1,609.00 | ▲ 1.93 | ▲ 2.18 |
