Iron ore futures declined on Wednesday, erasing gains from the previous session as concerns over potential steel production curbs weighed on market sentiment.
Earlier in the day, iron ore prices had been rising amid expectations that steel output would increase following the conclusion of China’s key parliamentary meeting, which was seen as a near-term support for iron ore demand.
However, by the end of the morning session, prices slipped following market speculation that China had finalized details on steel output controls, with an official announcement expected later this week.
Earlier this month, China’s National Development and Reform Commission (NDRC) proposed production curbs to address overcapacity, though the specific extent of the cuts remains unclear.
On the Dalian Commodity Exchange, the most-traded May iron ore contract fell 0.32pct to 769.5 yuan (USD 106.1) per ton. Meanwhile, coke and coking coal futures edged up 0.06pct and 0.8pct, settling at 1,625 yuan (USD 224) per ton and 1,073 yuan (USD 148) per ton, respectively.
Over on the Shanghai Futures Exchange, rebar futures gained 0.59pct to 3,226 yuan (USD 445) per ton, while HRC futures rose 0.63pct to 3,363 yuan (USD 464) per ton. Wire rod futures edged up 0.29pct to 3,409 yuan (USD 470) per ton, and stainless steel futures climbed 0.71pct to 13,565 yuan (USD 1,871) per ton.
1 USD / 7.24 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,409 |
0.29 |
-0.21 |
| HRC | 3,363 |
0.63 |
0.48 |
| Rebar | 3,226 |
0.59 |
0.53 |
| Stainless Steel | 13,565 |
0.71 |
0.41 |
| Iron Ore | 769.5 |
-0.32 |
-0.65 |
| Coke | 1,625 |
0.06 |
0.18 |
| Coking Coal | 1,073 |
0.80 |
1.12 |
