Iron ore futures declined on Monday as persistent weak fundamentals continued to weigh on market sentiment.
The majority of Chinese steel mills are cutting production to mitigate losses due to weak downstream steel demand, which has further darkened the iron ore outlook. Higher port-side iron ore inventories and ongoing challenges in the property sector, a significant steel consumer, have exacerbated the market difficulties.
Major Chinese steel producer Baosteel reduced HRC prices by USD 14 per ton for domestic sales in September. Another leading steel producer, Shagang, lowered long steel prices by USD 10-14 per ton for the period of August 11-20, reflecting the subdued steel demand environment.
On the Dalian Commodity Exchange, the iron ore futures contract for January 2025 delivery fell by 1.08pct to 734 yuan (USD 102.4) per ton. Meanwhile, coke and coal prices decreased by 3.24pct and 2.72pct, respectively, to 1,912.5 yuan (USD 267) per ton and 1,360 yuan (USD 190) per ton.
On the Shanghai Futures Exchange, rebar futures dropped by 1.95pct to 3,222 yuan (USD 450) per ton, HRC futures fell by 2.09pct to 3,374 yuan (USD 471) per ton, and wire rod futures decreased by 1.25pct to 3,242 yuan (USD 452) per ton. Stainless steel futures also declined by 0.97pct to 13,730 yuan (USD 1,916) per ton.
1 USD / 7.16 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,242 |
-1.25 |
-0.99 |
| HRC | 3,374 |
-2.09 |
-1.66 |
| Rebar | 3,222 |
-1.95 |
-1.71 |
| Stainless Steel | 13,730 |
-0.97 |
-0.84 |
| Iron Ore | 734 |
-1.08 |
-1.02 |
| Coke | 1,912.5 |
-3.24 |
-2.80 |
| Coking Coal | 1,360 |
-2.72 |
-2.32 |
