Iron ore futures rose on Thursday as Beijing’s latest support measures provided a lift to sentiment. However, weak market fundamentals capped the gains.
China’s financial regulators announced plans to channel hundreds of billions of yuan in investments from large state-owned mutual funds and insurers into equities. These initiatives aim to boost consumer spending and stimulate economic growth.
Despite these measures, rising port-side iron ore inventories, already at elevated levels, and increasing steel inventories at major Chinese warehouses reflected weak demand fundamentals ahead of the Chinese New Year holidays, limiting the market’s upside potential.
Additionally, trade tensions resurfaced as the U.S. administration, led by former President Trump, proposed a 10pct tariff on Chinese imports. This development has sparked concerns for China’s steel sector. While robust steel exports last year masked the effects of slowing domestic demand, escalating trade frictions could pose challenges to exports this year.
On the Dalian Commodity Exchange, iron ore futures rose 0.44pct to 801.5 yuan (USD 109.4) per ton, while coke futures edged up 0.14pct to 1,751 yuan (USD 239) per ton. However, coking coal futures declined 0.8pct to 1,132.5 yuan (USD 155) per ton.
On the Shanghai Futures Exchange, rebar futures dropped 0.57pct to 3,333 yuan (USD 455) per ton, while HRC futures increased 0.46pct to 3,457 yuan (USD 472) per ton. Wire rod futures rose 0.59pct to 3,577 yuan (USD 488) per ton, while stainless steel futures fell 0.76pct to 13,060 yuan (USD 1,783) per ton.
1 USD / 7.32 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,577 |
0.59 |
-0.20 |
| HRC | 3,457 |
0.46 |
0.20 |
| Rebar | 3,333 |
-0.57 |
-0.12 |
| Stainless Steel | 13,060 |
-0.76 |
-0.84 |
| Iron Ore | 801.5 |
0.44 |
0.12 |
| Coke | 1,751 |
0.14 |
-0.46 |
| Coking Coal | 1,132.5 |
-0.79 |
-0.97 |
