Iron ore futures extended their losses on Thursday, driven by weak steel production data and concerns about demand.
China’s crude steel output fell by 9pct YoY to 82.9 mln tons in July and dropped 9.5pct compared to the previous month. For the January-July 2024 period, the country’s crude steel output decreased by 2.2pct YoY to 613.7 mln tons, according to the National Bureau of Statistics (NBS).
Steel producers are reducing output due to losses, and high port-side inventories are likely to maintain a bearish outlook for iron ore demand.
Additionally, weak property data is impacting market sentiment. Property investment in China dropped 10.2pct in the first seven months of the year, following a 10.1pct decline in January-June. New construction starts, measured by floor area, fell 23.2pct YoY, compared to a 23.7pct drop in the first half of the year.
On the Dalian Commodity Exchange, the January 2025 iron ore futures contract declined by 2.09pct to 703.5 yuan (USD 98.5) per ton. Conversely, coke and coking coal futures saw gains, with coke rising by 1.18pct to 1,853 yuan (USD 259) per ton and coking coal increasing by 3.52pct to 1,367.5 yuan (USD 192) per ton.
On the Shanghai Futures Exchange, rebar futures edged down by 0.16pct to 3,119 yuan (USD 437) per ton, HRC futures fell 1.71pct to 3,222 yuan (USD 451) per ton, and wire rod futures decreased by 0.83pct to 3,114 yuan (USD 436) per ton. Stainless steel futures remained unchanged at 13,620 yuan (USD 1,907) per ton at the end of the morning session.
1 USD / 7.14 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,114 |
-0.83 |
0.58 |
| HRC | 3,222 |
-1.71 |
-0.74 |
| Rebar | 3,119 |
-0.16 |
0.64 |
| Stainless Steel | 13,620 |
0 |
0.40 |
| Iron Ore | 703.5 |
-2.09 |
-1.35 |
| Coke | 1,879 |
1.18 |
1.38 |
| Coking Coal | 1,367.5 |
3.52 |
3.77 |
