Iron ore futures remained under pressure on Friday amid rising supply levels and concerns over steel demand, although losses were limited by relatively firm near-term consumption.
Higher shipments from major miners and still-elevated portside inventories in China continued to weigh on iron ore prices despite recent inventory declines. Some analysts noted that destocking was mainly observed in specific iron ore brands, while overall supply levels remained high.
Chinese steel production continued at relatively strong levels, supporting iron ore demand in the near term. Market participants said several blast furnaces resumed operations following maintenance shutdowns, while steel mill margins remained relatively adequate.
However, Chinese steel traders said rising steel supply was beginning to pressure finished steel prices in the spot market amid the absence of a significant demand recovery. Market sentiment also remained cautious due to the seasonal slowdown, with heavy rainfall in parts of China affecting construction activity and downstream steel consumption.
Reflecting the cautious market outlook, major Chinese steel producer Shagang kept its listed long steel prices unchanged for late May sales.
On the Dalian Commodity Exchange, the most-traded September iron ore contract edged down by 0.13pct to 792 yuan (USD 116.5) per ton. The contract posted a loss of 2.16pct compared with the close of last Friday’s morning session.
Coking coal and coke futures also declined by 3.69pct and 2.2pct to 1,162.5 yuan (USD 171) and 1,731 yuan (USD 255) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures slipped by 0.5pct to 3,168 yuan (USD 466) per ton, while HRC futures declined by 0.73pct to 3,385 yuan (USD 498) per ton. Wire rod futures edged lower by 0.12pct to 3,352 yuan (USD 493) per ton, while stainless steel futures decreased by 0.64pct to 14,745 yuan (USD 2,170) per ton.
1 USD / 6.79 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,352.00 | ▼ -0.12 | ▼ -0.24 |
| Hot Rolled Coils | 3,385.00 | ▼ -0.73 | ▼ -0.27 |
| Rebar | 3,168.00 | ▼ -0.50 | ▼ -0.22 |
| Stainless Steel | 14,745.00 | ▼ -0.64 | ▼ -0.31 |
| Iron ore | 792.00 | ▼ -0.13 | ▲ 0.32 |
| Coke | 1,731.00 | ▼ -2.20 | ▼ -1.39 |
| Coking Coal | 1,162.50 | ▼ -3.69 | ▼ -2.41 |