Iron ore futures continue to slide as the government’s move to limit steel output raises demand concerns.
According to reports, major steel mills have been directed to restrict their output, curbing any potential production growth for 2023.
The market sentiment was further dampened by weak economic data, as Chinese industrial profit witnessed a nearly 17 pct YoY decline in H1, sparking hopes for government stimulus measures.
Despite the Chinese government’s expression of intent to boost economic growth through measures, the lack of specific details regarding the stimulus weighed down on the iron ore market.
Consequently, Dalian iron ore futures for the September contract witnessed a significant 2.68pct drop, settling at 834.5 yuan (USD 118.6) per ton. Similarly, coke and coking coal futures experienced declines of 1.25pct and 1.75pct, reaching 2,297.5 yuan (USD 322) per ton and 1,485 yuan (USD 209) per ton, respectively.
In contrast, steel futures presented a mixed picture. Rebar futures on the Shanghai Futures Exchange saw a slight decrease of 0.31pct, reaching 3,851 yuan (USD 540) per ton. Meanwhile, HRC futures surged by 0.88pct, reaching 4,117 yuan (USD 570) per ton, and wire rod futures experienced a 0.47pct increase, settling at 4,302 yuan (USD 601) per ton. However, stainless steel futures faced a decline of 1.07pct, reaching 15,190 yuan (USD 2,127) per ton.
1 USD / 7.15 yuan
