Iron ore futures declined on Friday as market remained cautious due to ongoing demand concerns. Iron ore inventories at major Chinese ports rose on a weekly basis, while weak profitability at steel mills kept the outlook for iron ore demand bearish.
Despite this, iron ore futures recorded a weekly gain, partly supported by a continuous decline in finished steel inventories at major Chinese warehouses, driven by hopes for improved steel demand during the peak construction season in September. However, analysts warn that Beijing’s economic challenges, particularly in the troubled property sector, are likely to limit any significant rebound in demand.
On the Dalian Commodity Exchange, the most-traded iron ore futures contract fell by 0.53pct to 754 yuan (USD 106.1) per ton. Dalian coke futures remained nearly unchanged at 1,996.5 yuan (USD 281), while coking coal futures dropped by 1.51pct to 1,370.5 yuan (USD 193) per ton.
On the Shanghai Futures Exchange, rebar futures declined by 1.2pct to 3,222 yuan (USD 453) per ton, and HRC futures edged down by 0.27pct to 3,302 yuan (USD 465) per ton. Conversely, wire rod futures rose by 2.56pct to 3,284 yuan (USD 462) per ton, while stainless steel futures inched up by 0.11pct to 13,860 yuan (USD 1,950) per ton.
1 USD / 7.1 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,284 |
2.56 |
2.68 |
| HRC | 3,302 |
-0.27 |
-0.27 |
| Rebar | 3,222 |
-1.20 |
-1.15 |
| Stainless Steel | 13,860 |
0.11 |
-0.04 |
| Iron Ore | 754 |
-0.53 |
-0.80 |
| Coke | 1,996.5 |
0.03 |
0.28 |
| Coking Coal | 1,370.5 |
-1.51 |
-1.20 |
