Iron ore futures rose on Monday, supported by Beijing’s latest interest rate cut despite ongoing concerns about softening steel demand.
China reduced its benchmark lending rates after the central bank lowered interest rates at the end of September, part of a broader effort to stimulate economic growth. While these policy measures, particularly those targeting the property sector, are seen as essential for long-term recovery, many analysts remain cautious. They suggest that the effects will take time to materialize and may not provide an immediate boost to steel demand.
Chinese steel prices surged sharply before the October holidays but have since remained volatile. Demand during the traditional peak season fell short of expectations, despite initial optimism. Although rising steel production has supported futures for iron ore and other raw materials, this could put pressure on steel prices if demand fails to improve further.
Reflecting these trends, major Chinese steel producer Shagang lowered long steel prices for the domestic market by USD 14 per ton for late October sales.
On the Dalian Commodity Exchange, the most-traded iron ore contract rose by 1.45pct to 769.5 yuan (USD 106.7) per ton. Other steelmaking raw materials followed suit, with coke futures up 0.6pct to 1,997.5 yuan (USD 281) per ton, and coking coal futures increasing by 1.3pct to 1,365 yuan (USD 192) per ton.
On the Shanghai Futures Exchange, rebar futures climbed 1.08pct to 3,358 yuan (USD 473) per ton, while HRC futures rose by 0.95pct to 3,518 yuan (USD 495) per ton. Wire rod futures edged up 0.14pct to 3,645 yuan (USD 513) per ton, and stainless steel futures increased by 0.69pct to 13,865 yuan (USD 1,952) per ton.
1 USD / 7.1 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,645 |
0.14 |
-1.29 |
| HRC | 3,518 |
0.95 |
0.20 |
| Rebar | 3,358 |
1.08 |
0.66 |
| Stainless Steel | 13,865 |
0.69 |
0.65 |
| Iron Ore | 769.5 |
1.45 |
1.17 |
| Coke | 1,997.5 |
0.60 |
0.48 |
| Coking Coal | 1,365 |
1.30 |
1.03 |
