Iron ore futures prices fell on Monday as concerns over potential steel production cuts weighed on market sentiment. The decline followed comments from major steel producer Baosteel, which suggested that a nationwide reduction in steel output is likely this year.
Further reinforcing Baosteel’s outlook, the China Iron and Steel Association (CISA) stated that a broad consensus on output cuts has been reached within the country’s steel industry.
Despite the cautious outlook, analysts believe iron ore price losses may be limited in the near term due to strong demand ahead of restocking activity before the May holidays. This trend is supported by higher steel production levels seen in recent weeks.
On the Dalian Commodity Exchange, the most-active September iron ore contract slipped 0.49 pct to 710.5 yuan (USD 97.4) per ton. Coke and coking coal futures also declined, falling 1.2 pct and 1.66 pct to 1,562 yuan (USD 214) and 947 yuan (USD 130) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures dropped 0.61 pct to 3,110 yuan (USD 427) per ton. HRC futures rose 0.84 pct to 3,237 yuan (USD 444) per ton. Wire rod futures edged down 0.57 pct to 3,295 yuan (USD 452) per ton, while stainless steel futures gained 0.31 pct to 12,765 yuan (USD 1,751) per ton.
1 USD / 7.28 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,295 |
-0.57 |
0.15 |
| HRC | 3,237 |
0.84 |
1.02 |
| Rebar | 3,110 |
-0.61 |
0.29 |
| Stainless Steel | 12,765 |
0.31 |
0.67 |
| Iron Ore | 710.5 |
-0.49 |
0.21 |
| Coke | 1,562 |
-1.20 |
-0.26 |
| Coking Coal | 947 |
-1.66 |
-0.95 |