Iron ore futures extended their downward movement on Monday, pressured by high supply and sluggish steel consumption.
Prices also came under pressure from falling coking coal futures after supply concerns eased, with most coal mines resuming operations following safety inspections triggered by last month’s fatal accident in Shanxi province.
Market insiders said Chinese steel production could come under pressure in the coming months as weak steel demand continues to squeeze mill margins. Persistently high iron ore inventories at Chinese ports also remain a key bearish factor for the market.
Steel demand in China remained subdued due to the seasonal slowdown in the summer months. Chinese steel traders said demand fundamentals show little sign of improvement in the near term, while high production levels continue to pressure finished steel prices. Growing trade restrictions on Chinese steel exports are also clouding the outlook for the sector.
On the Dalian Commodity Exchange, the most-traded September iron ore contract fell 0.87pct to 739.5 yuan (USD 109.2) per ton. Coking coal and coke futures declined by 1.39pct and 0.49pct to 1,275.5 yuan (USD 188) per ton and 2,015.5 yuan (USD 298) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures slipped 0.22pct to 3,127 yuan (USD 462) per ton, while HRC futures fell 0.39pct to 3,338 yuan (USD 493) per ton. Wire rod futures rose 0.74pct to 3,381 yuan (USD 499) per ton, while stainless steel futures gained 0.6pct to 15,160 yuan (USD 2,239) per ton.
1 USD / 6.77 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,381.00 | ▲ 0.74 | ▲ 0.21 |
| Hot Rolled Coils | 3,338.00 | ▼ -0.39 | ▼ -0.33 |
| Rebar | 3,127.00 | ▼ -0.22 | ▼ -0.13 |
| Stainless Steel | 15,160.00 | ▲ 0.60 | ▼ -0.07 |
| Iron ore | 739.50 | ▼ -0.87 | ▼ -1.01 |
| Coke | 2,015.50 | ▼ -0.49 | ▼ -0.20 |
| Coking Coal | 1,275.50 | ▼ -1.39 | ▲ 0.35 |