Iron ore futures remained under pressure on Wednesday, with persistently weak demand continuing to weigh on market sentiment. Higher inventories at major Chinese ports remain a key overhang, limiting price support despite expectations of a potential recovery in steel production.
Analysts said that ample iron ore supply is likely to offset any near-term gains from improved steel output. With pre-holiday restocking activity fading and seasonal steel demand slowing, Chinese mills have turned increasingly cautious. Some producers are reportedly bringing forward maintenance schedules as they contend with thin margins and a seasonal lull.
Reflecting the cautious tone in the physical market, Shagang Steel kept long steel prices unchanged for early-February sales.
On the Dalian Commodity Exchange, the most-traded May iron ore contract slipped 0.32pct to 781.5 yuan (USD 112.5) per ton. In contrast, coking coal and coke futures rose 3.6pct and 2.85pct to 1,209 yuan (USD 174) per ton and 1,770 yuan (USD 255) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures edged up 0.13pct to 3,110 yuan (USD 448) per ton, while HRC gained 0.18pct to 3,274 yuan (USD 472). Wire rod futures inched higher to 3,465 yuan (USD 499), and stainless steel futures climbed 1.84pct to 13,825 yuan (USD 1,992) per ton.
1 USD / 6.94 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,465.00 | ▲ 0.09 | ▼ -0.17 |
| Hot Rolled Coils | 3,274.00 | ▲ 0.18 | ▲ 0.27 |
| Rebar | 3,110.00 | ▲ 0.13 | ▲ 0.35 |
| Stainless Steel | 13,825.00 | ▲ 1.84 | ▲ 1.74 |
| Iron ore | 781.50 | ▼ -0.32 | ▲ 0.51 |
| Coke | 1,770.00 | ▲ 2.85 | ▲ 3.11 |
| Coking Coal | 1,209.00 | ▲ 3.60 | ▲ 3.43 |
