Iron ore futures recovered on Thursday, as improved steel demand and stimulus hopes supported the key steelmaking raw material.
Steel demand in China remained firm, specially from the manufacturing sector, reflected by continuous weekly decline in the steel inventory at major Chinese warehouses, despite earlier fears of slowdown traditionally happened in the winter-period, however, some market insiders said it can still slow later this month if weather conditions deteriorate.
The commodity markets also get supported by expectations of additional stimulus measures. Earlier this week, China’s Politburo had vowed to switch to an appropriately loose monetary policy to spur economic growth. Market is now waiting for the conclusion of Central Economic Work Conference, where key economic targets and policies for the upcoming year will be finalized, to have more clarity on potential stimulus measures.
However higher port-side iron ore inventory remained a concerns for long-term demand outlook.
On the Dalian Commodity Exchange, iron ore futures rose 0.86pct to 818.5 yuan (USD 112.7) per ton. Coke and coking coal futures extended gains, climbing 1.55pct and 2.18 pct to 1,904 yuan (USD 262) and 1,195 yuan (USD 165) per ton, respectively.
In the Shanghai Futures Exchange, rebar futures rose by 0.59 pct to 3,428 yuan (USD 472) per ton, while HRC futures inched higher by 0.14pct to 3,562 yuan (USD 491) per ton. Wire rod futures gained 0.36pct to 3,633 yuan (USD 500) per ton, and stainless steel futures increased by 0.92 pct to 13,170 yuan (USD 1,814) 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 | 3,633 |
0.36 |
0.39 |
| HRC | 3,562 |
0.14 |
0.03 |
| Rebar | 3,428 |
0.59 |
0.44 |
| Stainless Steel | 13,170 |
0.92 |
0.38 |
| Iron Ore | 818.5 |
0.86 |
1.10 |
| Coke | 1,904 |
1.55 |
0.47 |
| Coking Coal | 1,195 |
2.18 |
1.09 |
