Iron ore futures fell on Monday, giving up early gains as concerns over demand overshadowed optimism about potential stimulus measures from Beijing. The uncertainty stemmed from possible crude steel output restrictions and escalating U.S.-China trade tensions.
Earlier in the session, iron ore prices had risen as investors anticipated economic stimulus following a drop in China’s consumer price index for February. However, market sentiment turned bearish after U.S. Commerce Secretary confirmed that a 25pct tariff on all steel imports would take effect on March 12, dampening demand prospects for iron ore.
Adding to the pressure, Beijing’s ongoing efforts to curb steel production to address overcapacity further weighed on market outlook. A detailed plan for these production cuts is expected to be released in the coming weeks.
On the Dalian Commodity Exchange, the most-traded May iron ore contract dropped 0.71pct to 769 yuan (USD 106.2) per ton. Coke and coking coal futures also declined, falling 1.97pct and 1.35pct to 1,618.5 yuan (USD 224) per ton and 1,063.5 yuan (USD 147) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, steel futures followed a downward trend with rebar futures decreased by 1.35pct to 3,220 yuan (USD 445) per ton. HRC futures dropped 0.89pct to 3,349 yuan (USD 463) per ton. Wire rod futures declined 1.41pct to 3,425 yuan (USD 473) per ton. In contrast, stainless steel futures bucked the trend, rising 0.45pct to 13,490 yuan (USD 1,863) per ton.
1 USD / 7.23 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,425 |
-1.41 |
-1.31 |
| HRC | 3,349 |
-0.89 |
-0.42 |
| Rebar | 3,220 |
-1.35 |
-0.99 |
| Stainless Steel | 13,490 |
0.45 |
0.78 |
| Iron Ore | 769 |
-0.71 |
-0.65 |
| Coke | 1,618.5 |
-1.97 |
-2.38 |
| Coking Coal | 1,063.5 |
-1.35 |
-1.83 |
