Iron ore futures declined on Monday as lower Chinese steel production and rising supply weighed on market sentiment.
Daily crude steel output among mills of the China Iron and Steel Association (CISA) fell 0.8pct during March 1-10 to an average of 2.01 mln tons per day, compared with late February. Output was also down 5.7pct YoY.
Market sentiment was also pressured after China Mineral Resources Group (CMRG), the country’s state-backed iron ore buyer, reportedly temporarily eased a ban on BHP’s Jimblebar fines, allowing steel mills to take delivery of port stocks for about a week. Meanwhile, high iron ore inventories at major Chinese ports continued to act as a key headwind.
On the Dalian Commodity Exchange, the most-traded May iron ore contract fell 0.74pct to 809 yuan (USD 117.3) per ton. Coking coal and coke futures rose 0.21pct and 0.14pct to 1,181 yuan (USD 171) and 1,746 yuan (USD 253) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures slipped to 3,140 yuan (USD 455) per ton, while HRC futures edged up to 3,299 yuan (USD 479) per ton. Wire rod futures declined 0.12pct to 3,361 yuan (USD 487), while stainless steel futures dropped 1.05pct to 14,120 yuan (USD 2,048) per ton.
1 USD / 6.89 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,361.00 | ▼ -0.12 | ▼ -0.42 |
| Hot Rolled Coils | 3,299.00 | ▲ 0.03 | ▲ 0.12 |
| Rebar | 3,140.00 | ▼ -0.03 | ▼ -0.06 |
| Stainless Steel | 14,120.00 | ▼ -1.05 | ▼ -0.50 |
| Iron ore | 809.00 | ▼ -0.74 | ▼ -0.31 |
| Coke | 1,746.00 | ▲ 0.14 | ▲ 0.49 |
| Coking Coal | 1,181.00 | ▲ 0.21 | ▲ 0.25 |
