Iron ore futures rose on Wednesday, supported by improving steel demand, which boosted market sentiment. Major steel producers, Baosteel and Shagang, kept domestic prices for long and flat steel products unchanged, a move seen by market insiders as a positive signal, halting the recent downward trend.
Increased steel demand and robust exports are expected to provide near-term support to prices. However, analysts remain cautious, noting that the steel demand recovery is modest and requires additional growth drivers to sustain momentum. Weaker profitability at steel mills may limit the upside for iron ore and other steelmaking raw material prices.
On the Dalian Commodity Exchange, the most-traded iron ore contract rose 1.09pct to 694 yuan (USD 97.4) per ton. Coke and coking coal futures gained 2.78pct and 2.35pct, respectively, to 1,831.5 yuan (USD 257) and 1,262 yuan (USD 177) per ton.
On the Shanghai Futures Exchange, rebar futures increased by 1.62pct to 3,137 yuan (USD 441) per ton, while HRC futures rose 1.37pct to 3,188 yuan (USD 448) per ton. Wire rod futures were up 1.02pct at 3,457 yuan (USD 485) per ton, and stainless steel futures edged up 0.15pct to 13,265 yuan (USD 1,863) per ton.
1 USD / 7.12 yuan
