Iron ore futures fell on Tuesday as market sentiment was dampened by lower production figures and persistently weak steel demand.
Daily crude steel output among China Iron and Steel Association (CISA) member mills dropped again in the last ten days of July, decreasing by 8.1pct from July 21-31 compared to a 0.2pct dip in the middle ten days of July. Production was also down by 7.6pct YoY.
Many Chinese steel producers are reportedly operating at a loss due to weak demand and may reduce output through maintenance, which could further pressure iron ore prices. Additionally, port-side iron ore inventories remain at record-high levels despite a recent weekly decline.
Market insiders anticipate some improvement in steel demand this month due to expected better weather. However, concerns persist due to ongoing issues in the property sector and a sluggish Chinese economy.
In the Dalian Commodity Exchange, January 2025 iron ore futures fell by 1.42pct to 763 yuan (USD 107) per ton. Dalian coke and coking coal futures also declined, by 0.99pct and 1.06pct, respectively, to 1,992 yuan (USD 279) per ton and 1,402 yuan (USD 197) per ton.
On the Shanghai Futures Exchange, rebar futures decreased by 1.78pct to 3,306 yuan (USD 464) per ton, while HRC futures fell by 0.97pct to 3,487 yuan (USD 489) per ton. Wire rod futures rose by 1.5pct to 3,458 yuan (USD 485) per ton, and stainless steel futures dropped by 1.35pct to 13,900 yuan (USD 1,950) per ton.
1 USD / 7.12 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,458 |
1.50 |
1.27 |
| HRC | 3,487 |
-0.97 |
-1.12 |
| Rebar | 3,306 |
-1.78 |
-1.85 |
| Stainless Steel | 13,900 |
-1.35 |
-1.19 |
| Iron Ore | 763 |
-1.42 |
-1.77 |
| Coke | 1,992 |
-0.99 |
-0.88 |
| Coking Coal | 1,402 |
-1.06 |
-1.50 |
