This Content Is Only For Paid Subscribers
China’s iron ore futures edged lower on Wednesday as demand sentiment remained mixed, with tight steel mill margins and a lack of substantial improvement in steel demand weighing on the market.
Market insiders said Chinese steel mills remain cautious about iron ore purchases at relatively high prices, while some loss-making mills have started blast furnace maintenance. However, expectations for the September-October peak season continue to provide some support.
Chinese steel traders said the market was largely stable, with local steel prices mostly unchanged. They noted that demand has yet to show a significant improvement, while rising logistics costs and port congestion are adding to market uncertainty.
High port-side iron ore inventories remain a key headwind for the market. On the other hand, rising oil prices are providing some cost support, with Brent crude rising above USD 100 per barrel amid renewed concerns over Middle East oil supplies.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell 0.27pct to 738 yuan (USD 110) per ton. Coking coal futures rose 0.30pct to 1,655 yuan (USD 247) per ton, while coke futures fell 0.05pct to 2,160.5 yuan (USD 322) per ton.
On the Shanghai Futures Exchange, HRC futures rose 0.15pct to 3,385 yuan (USD 504) per ton, while rebar futures increased 0.19pct to 3,169 yuan (USD 472) per ton. Wire rod futures gained 0.41pct to 3,428 yuan (USD 511) per ton, while stainless steel futures fell 0.40pct to 13,765 yuan (USD 2,052) per ton.
1 USD / 6.71 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,428.00 | ▲ 0.41 | ▲ 0.15 |
| Hot Rolled Coils | 3,385.00 | ▲ 0.15 | ▼ -0.30 |
| Rebar | 3,169.00 | ▲ 0.19 | ▼ -0.25 |
| Stainless Steel | 13,765.00 | ▼ -0.40 | ▼ -0.47 |
| Iron ore | 738.00 | ▼ -0.27 | ▼ -0.88 |
| Coke | 2,160.50 | ▼ -0.05 | ▼ -1.43 |
| Coking Coal | 1,655.00 | ▲ 0.30 | ▼ -2.08 |