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China’s iron ore futures fell on Monday, extending their recent decline, as weak steel mill margins and subdued steel demand continued to weigh on the market.
Market participants said worsening profitability is prompting more blast-furnace mills to reduce production or prepare for maintenance, limiting near-term demand for iron ore. High coke and coking coal costs are adding further pressure on mill margins.
Chinese steel traders said market sentiment remained negative, with domestic steel prices weakening and the expected September peak-season demand recovery showing limited improvement so far. Export activity has also started to soften, while rising logistics costs are adding uncertainty.
Coking coal and coke markets also remained under pressure from weakening steel demand and reduced mills’ willingness to accept further cost increases, although constrained domestic coal supply could limit downside in the near term, according to the analysts.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell 1.60pct to 708.5 yuan (USD 105.5) per ton. Coking coal declined 1.52pct to 1,588 yuan (USD 237), while coke fell 1.86pct to 2,055.5 yuan (USD 306) a ton.
On the Shanghai Futures Exchange, HRC futures fell 0.81pct to 3,310 yuan (USD 493) per ton, while rebar futures declined 0.71pct to 3,095 yuan (USD 461) per ton. Wire rod futures were unchanged at 3,394 yuan (USD 506) per ton, while stainless steel futures fell 0.77pct to 13,510 yuan (USD 2,013) per ton.
1 USD / 6.71 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,394.00 | 0.00 | ▼ -0.09 |
| Hot Rolled Coils | 3,310.00 | ▼ -0.81 | ▼ -0.45 |
| Rebar | 3,095.00 | ▼ -0.71 | ▼ -0.42 |
| Stainless Steel | 13,510.00 | ▼ -0.77 | ▼ -0.52 |
| Iron ore | 708.50 | ▼ -1.60 | ▼ -1.34 |
| Coke | 2,055.50 | ▼ -1.86 | ▼ -0.34 |
| Coking Coal | 1,588.00 | ▼ -1.52 | ▲ 0.19 |