Iron ore futures remained near one-year lows on Tuesday, with losses moderating as a slight recovery in demand provided some support, although ample supply, high port inventories and weak seasonal steel demand continued to weigh on sentiment.
Market insiders said iron ore fundamentals remained relatively weak, although the short-term demand outlook improved slightly as the impact of blast furnace maintenance on hot metal production declined this week.
Supply pressure also remained significant, with iron ore inventories at Chinese ports staying elevated. Chinese traders said the domestic steel market stabilized following the recent correction, although end-user demand showed little improvement due to the seasonal slowdown. Export activity also remained weak, but most Chinese mills have so far resisted further reductions in export offers.
On the Dalian Commodity Exchange, the most-traded September iron ore contract edged 0.43pct lower to 699.5 yuan (USD 104) per ton. Coking coal futures rose 1.36pct to 1,196.5 yuan (USD 177) per ton, while coke futures gained 0.11pct to 1,760 yuan (USD 261) per ton.
On the Shanghai Futures Exchange, rebar futures slipped 0.20pct to 2,983 yuan (USD 442) per ton and HRC futures edged 0.19pct lower to 3,201 yuan (USD 474) per ton. Wire rod futures gained 0.15pct to 3,255 yuan (USD 482) per ton, while stainless steel futures rose 1.68pct to 14,820 yuan (USD 2,196) per ton.
1 USD / 6.75 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,255.00 | ▲ 0.15 | ▼ -0.15 |
| Hot Rolled Coils | 3,201.00 | ▼ -0.19 | ▲ 0.12 |
| Rebar | 2,983.00 | ▼ -0.20 | ▲ 0.23 |
| Stainless Steel | 14,820.00 | ▲ 1.68 | ▲ 2.36 |
| Iron ore | 699.50 | ▼ -0.43 | ▲ 0.21 |
| Coke | 1,760.00 | ▲ 0.11 | ▲ 0.40 |
| Coking Coal | 1,196.50 | ▲ 1.36 | ▲ 1.21 |