Iron ore futures rose further on Thursday, extending their recovery from one-year lows as concerns over potential supply disruptions and firmer raw material prices supported sentiment, although underlying supply-demand fundamentals remained relatively weak.
Market sentiment was supported by reports that state-backed China Mineral Resources Group (CMRG) had instructed some Chinese steel mills to suspend iron ore supply negotiations with Rio Tinto for shipments from September. The move is seen as part of CMRG’s efforts to strengthen centralized purchasing and China’s bargaining position in negotiations with major global iron ore suppliers.
The development raised concerns over potential short-term disruptions to some supply channels, providing support to iron ore futures despite relatively high port arrivals and inventories. Market insiders said overall iron ore fundamentals showed little significant change, with supply remaining ample.
Chinese traders said domestic steel prices continued their mild recovery, although end-user demand remained sluggish. Steel inventories continued to increase, highlighting persistent weakness in consumption.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 2.57pct to 719 yuan (USD 106.5) per ton. Coke futures gained 2.69pct to 1,832.5 yuan (USD 271) per ton, while coking coal futures increased 1.48pct to 1,235.5 yuan (USD 183) per ton.
On the Shanghai Futures Exchange, HRC futures rose 1.06pct to 3,236 yuan (USD 479) per ton, rebar futures gained 0.97pct to 3,014 yuan (USD 447) per ton and wire rod futures increased 0.46pct to 3,270 yuan (USD 484) per ton. Stainless steel futures declined 1.54pct to 14,375 yuan (USD 2,130) per ton.
1 USD / 6.75 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,270.00 | ▲ 0.46 | 0.00 |
| Hot Rolled Coils | 3,236.00 | ▲ 1.06 | ▲ 0.90 |
| Rebar | 3,014.00 | ▲ 0.97 | ▲ 0.80 |
| Stainless Steel | 14,375.00 | ▼ -1.54 | ▼ -0.70 |
| Iron ore | 719.00 | ▲ 2.57 | ▲ 1.81 |
| Coke | 1,832.50 | ▲ 2.69 | ▲ 2.16 |
| Coking Coal | 1,235.50 | ▲ 1.48 | ▲ 0.20 |