Iron ore and most steel futures extended their losses on Wednesday, pressured by a weakening steel market and ongoing concerns about demand.
Higher port-side inventory, despite a slight recent weekly decline, and weak steel mill margins due to poor downstream steel demand continue to challenge the iron ore demand outlook. Additionally, the lack of stimulus measures from last week’s key political gathering has dampened market sentiment.
On the Dalian Commodity Exchange, iron ore futures for September delivery decreased by 1.65pct to 775.5 yuan (USD 106.5) per ton. Dalian coke and coking coal futures fell by 1.13pct and 0.8pct to 2,096.5 yuan (USD 288) and 1,489 yuan (USD 205) per ton, respectively. However, all steelmaking raw material futures posted slight gains compared to yesterday’s morning session.
Meanwhile, on the Shanghai Futures Exchange, rebar and HRC futures both decreased by over 1pct to 3,391 yuan (USD 466) per ton and 3,573 yuan (USD 491) per ton, respectively. Wire rod futures fell by 0.96pct to 3,507 yuan (USD 482) per ton. In contrast, stainless steel futures increased by 0.57pct to 14,065 yuan (USD 1,933) per ton.
1 USD / 7.27 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,507 |
-0.96 |
-0.51 |
| HRC | 3,573 |
-1.08 |
-0.28 |
| Rebar | 3,391 |
-1.08 |
-0.18 |
| Stainless Steel | 14,065 |
0.57 |
0.21 |
| Iron Ore | 775.5 |
-1.65 |
0.13 |
| Coke | 2,096.5 |
-1.13 |
0.07 |
| Coking Coal | 1,489 |
-0.80 |
0.47 |
