Iron ore futures declined on Monday, pressured by weak economic indicators from China that raised concerns over demand. China’s economy showed signs of losing momentum in April amid ongoing trade tensions with the U.S., with softness in property investment and fixed-asset spending.
Industrial production rose 6.1pct YoY, down from 7.7pct in March. Property investment dropped 10.3pct between January and April, while new home prices continued to edge lower.
Although China’s steel output rose 7pct month-on-month, analysts expect production to remain steady in the near term as steelmakers’ margins are still relatively healthy. However, sluggish demand is putting downward pressure on spot steel prices.
Adding to the bearish sentiment, iron ore inventories at major Chinese ports increased slightly on a weekly basis.
On the Dalian Commodity Exchange, the most active September iron ore contract fell 0.89pct to 722.5 yuan (USD 100.2) per ton. Dalian coke fell 1.79pct to 1,428 yuan (USD 198) per ton, while coking coal dropped 2.2pct to 845 yuan (USD 117).
On the Shanghai Futures Exchange, rebar dipped 1pct to 3,069 yuan (USD 426), HRC declined 1.02pct to 3,207 yuan (USD 445), wire rod slid 2.67pct to 3,321 yuan (USD 461), and stainless steel edged down 0.42pct to 12,950 yuan (USD 1,796) per ton.
1 USD / 7.21 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,321 |
-2.67 |
-2.20 |
| HRC | 3,207 |
-1.02 |
-0.59 |
| Rebar | 3,069 |
-1.00 |
-0.42 |
| Stainless Steel | 12,950 |
-0.42 |
-0.12 |
| Iron Ore | 722.5 |
-0.89 |
-0.76 |
| Coke | 1,428 |
-1.79 |
-1.23 |
| Coking Coal | 845 |
-2.20 |
-0.89 |