Iron ore futures extended their gains on Friday, buoyed by increased steel output, though the demand outlook remained bleak due to weak fundamentals.
According to the China Iron and Steel Association (CISA), member steel mills saw a 3.3pct increase in average daily crude steel output, reaching 2.2483 mln tons in early June (June 1-10), compared to late May (May 21-31).
However, finished steel inventories at CISA-affiliated mills rose by 10.43pct in the first ten days of June compared to the previous ten days, indicating subdued steel demand.
The rising iron ore inventory at major Chinese ports also exerted downward pressure on iron ore prices.
On the Dalian Commodity Exchange, iron ore futures for September delivery rose by 1.97pct to 827.5 yuan (USD 114) per ton. Meanwhile, Dalian coke and coking coal futures increased by 3.92pct and 2.41pct, respectively, reaching 2,331 yuan (USD 321) per ton and 1,658 yuan (USD 229) per ton.
On the Shanghai Futures Exchange, rebar futures increased by 0.72pct to 3,637 yuan (USD 501) per ton, HRC futures grew by 0.74pct to 3,806 yuan (USD 525) per ton, and wire rod futures rose by 0.83pct to 3,885 yuan (USD 536) per ton. In contrast, stainless steel futures decreased by 0.57pct to 13,930 yuan (USD 1,920) per ton.
1 USD / 7.25 yuan
| Material | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
| Wire Rod | 3,885 | 0.83 | 0.72 |
| HRC | 3,806 | 0.74 | 0.47 |
| Rebar | 3,637 | 0.72 | 0.44 |
| Stainless Steel | 13,930 | -0.57 | -0.07 |
| Iron Ore | 827.5 | 1.97 | 1.27 |
| Coke | 2,331 | 3.92 | 2.92 |
| Coking Coal | 1,658 | 2.41 | 2.35 |
