China’s iron ore futures came under renewed pressure on Thursday as the market reopened after the week-long National Day holiday, with weak steel demand, rising inventories and poor mill profitability weighing on sentiment.
Steel market sentiment also remained weak. Chinese traders reported a slow start after the holiday, with futures prices declining across the major steel products and domestic steel inventories increasing during the break.
Raw material sentiment was mixed. Coking coal futures moved higher after the holiday, but market insiders viewed the increase as a short-lived correction following steep pre-holiday losses, with spot prices continuing to weaken.
The near-term outlook for iron ore remains bearish as supply growth and high port inventories face weak steel demand.
On the Dalian Commodity Exchange, the most-traded iron ore contract was last down 3.12 pct at 682.5 yuan (USD 101.8) per ton. Coking coal rose 2.07 pct to 1,476 yuan (USD 220) per ton, while coke slipped 0.18 pct to 1,953 yuan (USD 291) per ton.
On the Shanghai Futures Exchange, rebar declined 1.77 pct to 3,061 yuan (USD 457) per ton. HRC fell 1.22 pct to 3,242 yuan (USD 484) per ton. Wire rod futures inched higher at 3,370 yuan (USD 503) per ton, while stainless steel fell 1.82 pct to 13,455 yuan (USD 2,007) per ton.
1 USD / 6.7 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,370.00 | ▲ 0.03 | ▼ -0.24 |
| Hot Rolled Coils | 3,242.00 | ▼ -1.22 | ▼ -0.99 |
| Rebar | 3,061.00 | ▼ -1.77 | ▼ -1.67 |
| Stainless Steel | 13,455.00 | ▼ -1.82 | ▼ -1.82 |
| Iron ore | 682.50 | ▼ -3.12 | ▼ -2.93 |
| Coke | 1,953.00 | ▼ -0.18 | ▼ -0.28 |
| Coking Coal | 1,476.00 | ▲ 2.07 | ▲ 1.83 |