Iron ore futures ended nearly flat on Thursday, with short-term fundamentals providing support, though uncertainty over the long-term outlook continued to weigh on sentiment.
The market found support from falling steel inventories at major Chinese warehouses, increased steel production in China, and reduced output and shipments from leading global iron ore miners. However, concerns linger about the sustainability of steel demand.
Industry insiders remain cautious, noting that high summer temperatures could slow construction activity, while rising protectionist measures against Chinese steel exports and escalating trade tensions between Beijing and Washington may dampen long-term demand.
Adding to the cautious sentiment is uncertainty over potential stimulus from Beijing. Recent strong economic data, including robust GDP growth and other positive indicators, have lowered expectations for additional policy support.
On the Dalian Commodity Exchange, the most-traded September iron ore contract was little changed, closing at 707 yuan (USD 96.8) per ton. Coke and coking coal futures fell by 1.27pct and 2.26pct, respectively, to 1,555.5 yuan (USD 213) and 950.5 yuan (USD 130) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures declined 0.45pct to 3,092 yuan (USD 423) per ton. HRC futures dropped 0.75pct to 3,191 yuan (USD 437), wire rod futures slipped 0.27pct to 3,326 yuan (USD 455), and stainless steel futures edged down 0.04pct to 12,845 yuan (USD 1,759) per ton.
1 USD / 7.3 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,326 |
-0.27 |
0 |
| HRC | 3,191 |
-0.75 |
-0.44 |
| Rebar | 3,092 |
-0.45 |
-0.03 |
| Stainless Steel | 12,845 |
-0.04 |
0.19 |
| Iron Ore | 707 |
0.07 |
-0.14 |
| Coke | 1,555.5 |
-1.27 |
-0.68 |
| Coking Coal | 950.5 |
-2.26 |
-1.63 |