Iron ore futures saw a modest uptick on Tuesday, supported by firm near-term demand, though broader market gains were limited by long-term economic concerns.
Despite a month-on-month dip in steel production for April, output levels remain sufficient to sustain iron ore prices, analysts said, noting that steelmakers are still enjoying relatively healthy profit margins.
Market sentiment also received a boost from China’s recent interest rate cuts. The People’s Bank of China lowered the 1-year loan prime rate from 3.1pct to 3.0pct, and the 5-year rate from 3.6pct to 3.5pct. These rates serve as key benchmarks for corporate lending, household loans, and mortgages.
However, slower growth in China’s industrial output and continued weakness in the property sector continue to weigh on investor confidence.
On the Dalian Commodity Exchange, the most active September iron ore contract rose 0.28pct to 725 yuan (USD 100.5) per ton. In contrast, coke futures fell 1.71pct to 1,407.5 yuan (USD 195), while coking coal dropped 1.47pct to 838.5 yuan (USD 116) per ton.
Meanwhile, on the Shanghai Futures Exchange, steel prices were mostly lower. Rebar futures dipped 0.59pct to 3,058 yuan (USD 424), HRC slipped 0.37pct to 3,202 yuan (USD 444), wire rod declined 0.51pct to 3,337 yuan (USD 463), and stainless steel fell 1pct to 12,840 yuan (USD 1,780) per ton.
1 USD / 7.21 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,337 |
-0.51 |
0.48 |
| HRC | 3,202 |
-0.37 |
-0.16 |
| Rebar | 3,058 |
-0.59 |
-0.36 |
| Stainless Steel | 12,840 |
-1.00 |
-0.86 |
| Iron Ore | 725 |
0.28 |
0.34 |
| Coke | 1,407.5 |
-1.71 |
-1.46 |
| Coking Coal | 838.5 |
-1.47 |
-0.78 |