Dalian iron ore futures rose slightly on Thursday, supported by firm near-term demand. However, gains were limited due to ongoing uncertainty surrounding long-term demand prospects.
Steel production remained elevated, as most Chinese steelmakers continue to operate profitably. While steel demand held steady, signs of weakening have emerged, raising concerns that the summer season, typically a period of slower construction activity, could further dampen consumption.
Adding to the cautious sentiment are recent signs of economic weakness in China, potential curbs on steel production, and the risk of declining steel exports in the second half of the year due to rising global protectionist measures. These factors are likely to weigh on iron ore demand over the long term.
On the Dalian Commodity Exchange, the most active September iron ore contract inched up 0.14pct to 727 yuan (USD 100.8) per ton. In contrast, coke and coking coal futures declined, falling 0.85pct to 1,406.5 yuan (USD 195) and 1.66pct to 827.5 yuan (USD 115) per ton, respectively.
Meanwhile, steel prices on the Shanghai Futures Exchange were mostly flat. Rebar and HRC futures remained steady at 3,061 yuan (USD 424) and 3,210 yuan (USD 445) per ton, respectively. Wire rod futures edged down to 3,339 yuan (USD 463), while stainless steel futures posted a marginal gain of 0.04pct to 12,880 yuan (USD 1,786) per ton.
1 USD / 7.21 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,339 |
-0.06 |
-0.06 |
| HRC | 3,210 |
0.09 |
-0.03 |
| Rebar | 3,061 |
-0.03 |
0 |
| Stainless Steel | 12,880 |
0.04 |
0.08 |
| Iron Ore | 727 |
0.14 |
-0.21 |
| Coke | 1,406.5 |
-0.85 |
-0.78 |
| Coking Coal | 827.5 |
-1.66 |
-1.75 |