This Content Is Only For Paid Subscribers
China’s iron ore futures edged higher on Wednesday as concerns over Brazilian supply provided support, although weakening steel mill profitability and expectations of lower steel output limited the upside.
Market insiders said pre-holiday restocking ahead of the October 1-7 holiday is nearing completion, reducing a key source of near-term demand support. More steel mills are also expected to carry out maintenance after the holiday as losses deepen, pointing to weaker iron ore consumption.
On the supply side, market talk of lower iron ore shipments from Brazil supported prices. El Nino-related weather disruptions could affect mining operations, rail transport and port shipments in Brazil, adding uncertainty to near-term supply. However, high Chinese port-side inventories remain a key headwind limiting the upside.
Chinese steel traders said the market lacks a clear direction ahead of the holiday, with most steel prices moving only slightly. Export prices were generally stable.
On the Dalian Commodity Exchange, the most-traded iron ore contract rose 0.07 pct to 712 yuan (USD 106.1) per ton. Coking coal fell 1.67 pct to 1,503 yuan (USD 224) per ton, while coke declined 0.93 pct to 1,968.5 yuan (USD 293) per ton.
On the Shanghai Futures Exchange, HRC futures fell 0.18 pct to 3,301 yuan (USD 492) per ton, while rebar declined 0.26 pct to 3,113 yuan (USD 464) per ton. Wire rod fell 0.99 pct to 3,392 yuan (USD 505) per ton, while stainless steel increased 0.65 pct to 13,840 yuan (USD 2,062) 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 | 3,392.00 | ▼ -0.99 | ▼ -0.50 |
| Hot Rolled Coils | 3,301.00 | ▼ -0.18 | ▲ 0.06 |
| Rebar | 3,113.00 | ▼ -0.26 | ▼ -0.03 |
| Stainless Steel | 13,840.00 | ▲ 0.65 | ▲ 0.69 |
| Iron ore | 712.00 | ▲ 0.07 | ▲ 0.56 |
| Coke | 1,968.50 | ▼ -0.93 | ▼ -0.79 |
| Coking Coal | 1,503.00 | ▼ -1.67 | ▼ -1.03 |
