Iron ore futures posted gains on Monday, supported by steady demand and higher costs linked to ongoing tensions in the Middle East.
Chinese steel mills continued to replenish iron ore inventories amid improving steel production, supporting demand for the raw material. Domestic steel consumption also remained firm, reflected in declining finished steel inventories at major warehouses in China.
At the same time, geopolitical tensions and potential risks to the Strait of Hormuz provided a floor to prices, as elevated energy and freight costs persisted.
However, some analysts warned that rising raw material prices, including iron ore, could pressure margins for Chinese steel mills, potentially slowing production and weighing on demand. While inventories at major Chinese ports declined in the latest week, overall levels remain high and continue to act as a longer-term headwind.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 1.16pct to 786.5 yuan (USD 112.6) per ton. Coking coal and coke futures increased by 2.77pct and 2.27pct to 1,263.5 yuan (USD 185) and 1,738 yuan (USD 255) per ton, respectively.
On the Shanghai Futures Exchange, rebar rose 1.24pct to 3,172 yuan (USD 465) per ton, while HRC increased 1.17pct to 3,362 yuan (USD 493) per ton. Wire rod gained 0.64pct to 3,296 yuan (USD 483) per ton, while stainless steel fell 0.47pct to 14,925 yuan (USD 2,189) per ton.
1 USD / 6.81 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,296.00 | ▲ 0.64 | ▲ 0.79 |
| Hot Rolled Coils | 3,362.00 | ▲ 1.17 | ▲ 1.13 |
| Rebar | 3,172.00 | ▲ 1.24 | ▲ 1.23 |
| Stainless Steel | 14,925.00 | ▼ -0.47 | ▼ -1.07 |
| Iron ore | 786.50 | ▲ 1.16 | ▲ 1.02 |
| Coke | 1,738.00 | ▲ 2.27 | ▼ -2.30 |
| Coking Coal | 1,263.50 | ▲ 2.77 | ▲ 2.97 |