Iron ore futures extended gains on Thursday, buoyed by robust steel demand in China’s domestic market, although concerns over long-term demand remain.
Inventory levels of major finished steel products in Chinese warehouses declined on a weekly basis, signaling strong consumption. As the spring season approaches, a period when construction activity typically picks up, steel mills are ramping up production, further supporting iron ore demand.
However, Beijing’s plans to cut steel production capacity and rising protectionist measures against Chinese steel exports continue to pose risks to the iron ore outlook.
On the Dalian Commodity Exchange, the most-traded May iron ore contract rose 1.28pct to 789 yuan (USD 108.6) per ton. Coke and coking coal futures also advanced, up 1.55pct and 0.78pct respectively, to 1,637.5 yuan (USD 225) and 1,035 yuan (USD 143) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures slipped 0.19pct to 3,208 yuan (USD 442) per ton. HRC futures edged down 0.12pct to 3,386 yuan (USD 466), and wire rod futures dropped 0.26pct to 3,438 yuan (USD 473). Stainless steel futures bucked the trend, gaining 0.37pct to 13,440 yuan (USD 1,851) per ton.
1 USD / 7.26 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,424 |
-0.26 |
-0.15 |
| HRC | 3,381 |
-0.12 |
-0.15 |
| Rebar | 3,208 |
-0.19 |
-0.03 |
| Stainless Steel | 13,440 |
0.37 |
0.22 |
| Iron Ore | 789 |
1.28 |
1.14 |
| Coke | 1,637.5 |
1.55 |
1.34 |
| Coking Coal | 1,035 |
0.78 |
0.92 |