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Iron ore futures strengthened on Monday as firmer steel and raw material prices improved market sentiment, although rising iron ore supply and weak underlying steel demand remained concerns.
The market has shifted toward stronger cost support in recent days, with Chinese steel prices and export indications moving higher. Traders said domestic steel prices have increased in recent days, bringing some buying interest back to the market. However, underlying demand has yet to fully recover, keeping the upside constrained.
Iron ore supply pressure increased after China’s port arrivals rebounded sharply following the easing of typhoon-related disruptions. High portside inventories also remain a key headwind for prices.
Despite this, expectations of stronger demand during the September-October peak season, together with hopes for further fiscal and financial support for domestic demand, have improved sentiment. Iron ore has largely followed gains in finished steel, although its own fundamentals remain weaker and further upside is likely to face resistance.
Coke and coking coal prices are providing additional cost support. Coke prices have started to rise as tight supply and expectations of further production cuts reinforce pressure on steel mills. Coking coal also remains firm, particularly for higher-quality material, amid continued production restrictions.
Chinese steel traders said the export market has also improved, while a weaker USD has further supported steel prices.
On the Dalian Commodity Exchange, the most-traded iron ore contract rose 1.27pct to 716 yuan (USD 106.5) per ton. Coke futures increased 2.92pct to 2,152.5 yuan (USD 320) per ton, while coking coal futures rose 0.83pct to 1,584 yuan (USD 234) per ton.
On the Shanghai Futures Exchange, HRC futures increased 1.49pct to 3,340 yuan (USD 497) per ton, while rebar futures rose 0.92pct to 3,066 yuan (USD 456) per ton. Wire rod futures increased 0.46pct to 3,276 yuan (USD 488) per ton, while stainless steel futures edged up 0.18pct to 14,215 yuan (USD 2,115) 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 | 3,276.00 | ▲ 0.46 | ▲ 0.55 |
| Hot Rolled Coils | 3,340.00 | ▲ 1.49 | ▲ 1.35 |
| Rebar | 3,066.00 | ▲ 0.92 | ▲ 0.88 |
| Stainless Steel | 14,215.00 | ▲ 0.18 | ▲ 0.11 |
| Iron ore | 716.00 | ▲ 1.27 | ▲ 1.19 |
| Coke | 2,152.50 | ▲ 2.92 | ▲ 1.53 |
| Coking Coal | 1,584.00 | ▲ 0.83 | ▲ 0.16 |