Iron ore futures fell on Thursday as weak steel demand outweighed support from firmer coke and coking coal prices.
Crude steel production among China Iron and Steel Association (CISA) member mills fell 3.4pct YoY to 473 mln tons in January-July, with July output declining 2.9pct YoY and 5pct MoM to 64.8 mln tons. Many steel producers implemented production cuts or maintenance in July.
Steel mills remain cautious in iron ore restocking as weak finished steel prices and rising costs for other raw materials continue to squeeze margins.
Iron ore supply also remains ample, with inventories at major Chinese ports standing at elevated levels despite a recent decline.
However, relatively stable blast furnace activity and the recent decline in port inventories provide some support to iron ore consumption. Market insiders expect prices to remain in consolidation in the near term, with direction likely to depend on further market developments.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell 1.19pct to 707 yuan (USD 105.1) per ton. Coke futures rose 1.17pct to 2,072 yuan (USD 308) per ton, while coking coal futures increased 1.34pct to 1,591.5 yuan (USD 237) per ton.
On the Shanghai Futures Exchange, rebar futures increased 0.13pct to 3,032 yuan (USD 451) per ton, while HRC futures rose 0.03pct to 3,291 yuan (USD 489) per ton. Wire rod futures fell 0.73pct to 3,261 yuan (USD 485) per ton, while stainless steel futures increased 0.14pct to 14,300 yuan (USD 2,126) per ton.
1 USD / 6.72 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,261.00 | ▼ -0.73 | 0.00 |
| Hot Rolled Coils | 3,291.00 | ▲ 0.03 | ▲ 0.15 |
| Rebar | 3,032.00 | ▲ 0.13 | ▲ 0.49 |
| Stainless Steel | 14,300.00 | ▲ 0.14 | ▲ 0.28 |
| Iron ore | 707.00 | ▼ -1.19 | ▼ -0.71 |
| Coke | 2,072.00 | ▲ 1.17 | ▲ 0.68 |
| Coking Coal | 1,591.50 | ▲ 1.34 | ▲ 0.31 |