Iron ore futures fell on Thursday, pressured by weak steel demand and market sentiment. Persistent sluggishness in downstream steel demand has led steel producers to cut output, reducing iron ore demand. Additionally, a steady decline in Chinese steel exports reflects a global slowdown in steel consumption, while rising protectionist measures against Chinese steel in key markets further dampen the outlook.
Iron ore prices are also under pressure from rumors of potential output curbs in Tangshan, a major steel-producing province. Higher port-side iron ore inventories and increasing imports are likely to maintain a bearish outlook for the commodity.
Although there is a potential for improvement in steel demand in the coming weeks, analysts caution that a strong rebound is unlikely due to ongoing issues in China’s property sector, a major steel consumer.
On the Dalian Commodity Exchange, January 2025 iron ore futures fell 3.63pct to 729.5 yuan (USD 101.7) per ton. Dalian coke and coal prices decreased by 1.82pct and 1.75pct, respectively, to 1,966 yuan (USD 274) per ton and 1,378 yuan (USD 192) per ton.
On the Shanghai Futures Exchange, rebar futures dropped 1.78pct to 3,254 yuan (USD 454) per ton, HRC futures fell 2.04pct to 3,415 yuan (USD 476) per ton, and wire rod futures plunged 3.17pct to 3,295 yuan (USD 460) per ton. Stainless steel futures also declined by 0.76pct to 13,800 yuan (USD 1,925) per ton.
1 USD / 7.16 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,295 |
-3.17 |
-0.55 |
| HRC | 3,415 |
-2.04 |
-1.93 |
| Rebar | 3,254 |
-1.78 |
-1.54 |
| Stainless Steel | 13,800 |
-0.76 |
-0.62 |
| Iron Ore | 729.5 |
-3.63 |
-2.67 |
| Coke | 1,966 |
-1.82 |
-1.42 |
| Coking Coal | 1,378 |
-1.75 |
-2.47 |
