Dalian iron ore futures posted gains on Monday, recovering from earlier losses as expectations of improved steel demand supported the market, although long-term demand concerns persist.
Analysts noted that better weather conditions are expected to boost downstream activity, including construction, which would positively impact steel demand. Additionally, steel prices are likely to find support as several mills have curtailed production to ease supply pressure.
However, long-term concerns remain for both steelmaking raw materials and steel futures due to high port-side iron ore inventories and the ongoing crisis in the property sector, a major steel consumer.
On the Dalian Commodity Exchange, the most-traded iron ore futures contract rose by 0.71pct to 712 yuan (USD 99.3) per ton. Meanwhile, coke and coking coal futures declined by 0.38pct and 1.5pct, respectively, to 1,842.5 yuan (USD 257) per ton and 1,346.5 yuan (USD 188) per ton.
On the Shanghai Futures Exchange, rebar futures gained 1.41pct to 3,156 yuan (USD 440) per ton, while HRC futures fell 1.27pct to 3,176 yuan (USD 443) per ton. Wire rod futures increased by 1.51pct to 3,169 yuan (USD 442) per ton, and stainless steel futures rose 0.62pct to 13,735 yuan (USD 1,917) per ton.
Overall, steelmaking raw material and steel futures showed gains compared to the previous morning session’s close.
1 USD / 7.16 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,169 |
1.51 |
2.49 |
| HRC | 3,176 |
-1.27 |
0.47 |
| Rebar | 3,156 |
1.41 |
2.47 |
| Stainless Steel | 13,735 |
0.62 |
0.58 |
| Iron Ore | 712 |
0.71 |
2.11 |
| Coke | 1,842.5 |
-0.38 |
0.92 |
| Coking Coal | 1,346.5 |
-1.50 |
0.30 |
