Iron ore futures fell on Monday, weighed down by weak demand fundamentals and a lackluster stimulus package, which dampened market sentiment.
Demand for iron ore remains soft, driven by high port inventories and shrinking margins for steel mills. Steel demand typically slows in winter, and downstream buyers have shown only modest interest, potentially leading to production cuts by steelmakers.
Shagang, a major Chinese steel producer, kept its domestic long steel prices unchanged for the November 11-20 period, signaling cautious market sentiment regarding steel demand.
Last week, Beijing introduced a debt-swap plan aimed at boosting economic growth but did not include direct measures to stimulate domestic demand. This disappointed commodity markets, which had expected more significant stimulus following Donald Trump’s re-election as U.S. president.”
On the Dalian Commodity Exchange, the most-traded iron ore contract dropped 2.87pct to 762 yuan (USD 106.1) per ton. Coke and coking coal futures also declined by 4.61pct and 2.98pct, to 1,934.5 yuan (USD 269) and 1,300.5 yuan (USD 181) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures fell 2.35pct to 3,331 yuan (USD 464) per ton, and HRC futures slipped 1.9pct to 3,510 yuan (USD 489). Wire rod futures decreased by 2.95pct to 3,553 yuan (USD 495), while stainless steel futures dropped 1.45pct to 13,565 yuan (USD 1,889) per ton.
1 USD / 7.18 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,553 |
-2.95 |
-1.69 |
| HRC | 3,510 |
-1.9 |
-0.88 |
| Rebar | 3,331 |
-2.35 |
-1.08 |
| Stainless Steel | 13,565 |
-1.45 |
0.15 |
| Iron Ore | 762 |
-2.87 |
-1.84 |
| Coke | 1,934.5 |
-4.61 |
-2.82 |
| Coking Coal | 1,300.5 |
-2.98 |
-1.69 |
