Iron ore futures recorded gains on Monday, but the demand outlook remains uncertain due to weakening steel demand.
Steel consumption typically slows during the winter months as downstream activities, particularly construction, decline across much of China. Despite this seasonal trend, restocking by Chinese steel mills ahead of the Chinese New Year holidays, which begin on January 28, and expectations of economic stimulus from Beijing next year provided short-term support.
However, higher portside iron ore inventories, despite recent weekly declines, and falling steel output continue to weigh on demand for the key steelmaking raw material.
On the Dalian Commodity Exchange, iron ore futures rose 0.98% to 775.5 yuan (USD 106) per ton, while coke and coking coal futures increased by 0.78% and 1.58%, reaching 1,798.5 yuan (USD 246) per ton and 1,157.5 yuan (USD 159) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures gained 1% to 3,317 yuan (USD 454) per ton, and HRC futures edged up 0.56% to 3,433 yuan (USD 470) per ton. Wire rod futures, however, declined 1.29% to 3,530 yuan (USD 484) per ton, while stainless steel futures rose modestly by 0.31% to 13,020 yuan (USD 1,784) per ton.
1 USD / 7.29 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,530 |
-1.29 |
-1.42 |
| HRC | 3,433 |
0.56 |
0.96 |
| Rebar | 3,317 |
1.00 |
1.48 |
| Stainless Steel | 13,020 |
0.31 |
0.65 |
| Iron Ore | 775.5 |
0.98 |
2.06 |
| Coke | 1,798.5 |
0.78 |
1.03 |
| Coking Coal | 1,157.5 |
1.58 |
1.51 |
