Iron ore prices continued to climb on Thursday, bolstered by expectations of additional stimulus measures and dwindling inventory levels at Chinese ports. However, concerns over weakening export data dampened demand prospects in the market.
On Wednesday, the futures market experienced a surge supported by robust loan data and signals from state media reports indicating the need for supportive policies in the property sector to boost business confidence. Nevertheless, the release of lackluster trade data raised apprehensions about steel demand.
China’s total exports recorded a second consecutive monthly decline, dropping by 12.4pct YoY in June, according to data from China’s Customs Bureau. In May, Chinese total exports had already decreased by 7.5pct.
Furthermore, the summer season in the country also affected steel demand, leading to a 1pct increase in major finished steel inventory at warehouses compared to the previous week, according to a report.
At the Dalian Commodity Exchange, the September contract for iron ore futures saw a 1.59pct increase, reaching 829 yuan (USD 115.4). Dalian coke and coking coal futures also experienced gains, rising by 0.85pct and 1.09pct respectively, concluding the morning trade at 2,184.5 yuan (USD 304) per ton and 1,395.5 yuan (USD 194) per ton.
Rebar futures grew by 0.92pct, settling at 3,727 yuan (USD 519) per ton, while HRC futures increased by 0.84pct, reaching 3,829 yuan (USD 533) per ton. Wire rod futures saw a slight rise of 0.49pct, reaching 4,102 yuan (USD 571) per ton. Stainless steel futures increased by 0.74pct to 14,970 yuan (USD 2,084) per ton.
1 USD / 7.18 yuan
