Iron ore futures extended gains on Wednesday, supported by restocking demand ahead of the May holiday period.
Chinese steel mills maintained firm production levels amid firm downstream demand, supporting near-term iron ore consumption and buying activity.
Market participants noted that BHP has concluded iron ore sales contract negotiations with China Mineral Resources Group (CMRG), although details were not disclosed. Analysts said the development had limited impact on prices as it was largely priced in earlier.
Despite the positive near-term outlook, high inventories at Chinese ports and rising protectionist measures on Chinese steel exports remain key headwinds for iron ore.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 0.32pct to 786.5 yuan (USD 115.2) per ton. Coking coal and coke futures increased by 1.07pct and 0.96pct to 1,273 yuan (USD 187) and 1,844.5 yuan (USD 270) per ton, respectively.
On the Shanghai Futures Exchange, rebar fell 0.31pct to 3,186 yuan (USD 467) per ton, while HRC rose 0.62pct to 3,388 yuan (USD 496) per ton. Wire rod edged lower to 3,278 yuan (USD 480) per ton, while stainless steel declined 0.5pct to 14,860 yuan (USD 2,178) per ton.
1 USD / 6.82 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,278.00 | ▼ -0.06 | ▼ -0.03 |
| Hot Rolled Coils | 3,388.00 | ▲ 0.62 | ▲ 0.65 |
| Rebar | 3,186.00 | ▲ 0.31 | ▲ 0.31 |
| Stainless Steel | 14,860.00 | ▼ -0.50 | ▲ 0.37 |
| Iron ore | 786.50 | ▲ 0.32 | ▲ 0.32 |
| Coke | 1,844.50 | ▲ 0.96 | ▲ 0.35 |
| Coking Coal | 1,273.00 | ▲ 1.07 | ▲ 0.86 |