Iron ore futures prices rose on Monday, buoyed by positive manufacturing data and hopes for additional stimulus measures.
The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) increased to 51.8 in June from 51.7 in the previous month. Meanwhile, the official manufacturing PMI remained unchanged at 49.5 in June, indicating contraction as it stayed below the 50-mark.
The two surveys cover different sample sizes, geographic locations, and types of businesses, with the Caixin poll focusing on smaller, export-oriented firms.
The market is also optimistic about potential stimulus from a key meeting known as the plenum, scheduled to be held from July 15 to July 18.
Despite these positive indicators, the fundamentals for the steel sector remained weak due to higher portside inventory and a continuous increase in finished steel stock at major warehouses in China. China’s Purchasing Managers’ Index for the steel industry fell to 47.8 in June, down 2 percentage points from May, reflecting ongoing challenges in the sector.
On the Dalian Commodity Exchange, iron ore futures for September delivery ended daytime trading with a gain of 2.5pct to 840 yuan (USD 115.5) per ton. Dalian coke futures and coking coal also increased by 3.33pct and 2.79pct, respectively, to 2,310 yuan (USD 218) per ton and 1,603 yuan (USD 221) per ton.
On the Shanghai Futures Exchange, rebar futures rose by 0.71pct to 3,562 yuan (USD 490) per ton. HRC futures increased to 3,760 yuan (USD 517) per ton. Wire rod futures rose by 0.78pct to 3,760 yuan (USD 517) per ton, while stainless steel futures increased by 0.86pct to 14,135 yuan (USD 1,944) per ton.
1 USD / 7.26 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,760 |
0.78 |
0.69 |
| HRC | 3,760 |
0.64 |
0.40 |
| Rebar | 3,562 |
0.71 |
0.51 |
| Stainless Steel | 14,135 |
0.86 |
0.64 |
| Iron Ore | 840 |
2.50 |
1.79 |
| Coke | 2,310 |
3.33 |
2.60 |
| Coking Coal | 1,603 |
2.79 |
1.84 |
