Iron ore futures retreated on Wednesday as cautious sentiment over demand outlook weighed on the market.
High port-side inventories in China continued to act as a key headwind, while rising global supply remains a concern for the longer-term outlook. Market sentiment was also influenced by China’s state-owned buyer easing restrictions on certain BHP grades, a move seen by analysts as an effort to stabilize the market.
In the spot market, Chinese traders reported improving sentiment ahead of the spring construction season, though this has yet to translate into a meaningful recovery in demand, with steel inventories at major domestic warehouses still at high levels.
Meanwhile, steel prices in China have shown a slight upward trend, largely driven by higher costs linked to energy and freight, amid ongoing Middle East tensions, which have also impacted export activity.
On the Dalian Commodity Exchange, the most-traded May iron ore contract fell 0.12pct to 811 yuan (USD 117.9) per ton. Coking coal and coke futures declined 1.15pct and 0.86pct to 1,156.5 yuan (USD 168) and 1,721.5 yuan (USD 250) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures edged lower to 3,140 yuan (USD 457) per ton, while HRC futures rose 0.21pct to 3,310 yuan (USD 482) per ton. Wire rod futures declined 0.69pct to 3,311 yuan (USD 482), and stainless steel futures fell 0.92pct to 14,020 yuan (USD 2,040) per ton.
1 USD / 6.87 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,311.00 | ▼ -0.69 | ▼ -0.60 |
| Hot Rolled Coils | 3,310.00 | ▲ 0.21 | ▼ -0.09 |
| Rebar | 3,140.00 | ▼ -0.10 | ▼ -0.25 |
| Stainless Steel | 14,020.00 | ▼ -0.92 | ▼ -0.53 |
| Iron ore | 811.00 | ▼ -0.12 | ▼ -0.68 |
| Coke | 1,721.50 | ▼ -0.86 | ▼ -0.61 |
| Coking Coal | 1,156.50 | ▼ -1.15 | ▼ -1.69 |
