Iron ore futures traded in a narrow range on Wednesday after China’s central bank reaffirmed a moderately accommodative monetary stance, though weak market fundamentals continued to cap any upside.
The People’s Bank of China said it will maintain supportive monetary conditions, including lowering banks’ funding costs and keeping overall financing costs relatively low, to bolster domestic demand amid ongoing structural challenges. The central bank added it would strengthen financial support for key sectors while avoiding excessive financial risks.
Latest data from the National Bureau of Statistics showed China’s consumer price index rose 0.2pct YoY in January and was up 0.2pct month on month, while producer prices fell 1.4pct YoY but increased 0.4pct from December, highlighting the need for further policy support.
Despite the policy signals, iron ore prices remained under pressure as sluggish steel market activity kept mills cautious on restocking. Higher inventories at major Chinese ports continued to weigh on sentiment, although some analysts noted that lower iron ore prices could help ease margin pressure on steelmakers.
On the Dalian Commodity Exchange, the most-traded May iron ore contract edged lower to 762.5 yuan (USD 110.3) per ton. Coking coal and coke futures fell 0.31pct and 0.86pct to 1,123.5 yuan (USD 163) and 1,667 yuan (USD 241) per ton, respectively.
On the Shanghai Futures Exchange, rebar and HRC futures were largely unchanged at 3,054 yuan (USD 442) and 3,228 yuan (USD 467) per ton. Wire rod futures slipped 0.15pct to 3,336 yuan (USD 483), while stainless steel futures rose 2.31pct to 14,145 yuan (USD 2,046) per ton.
1 USD / 6.91 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
| Wire Rod | 3,336.00 | ▼ -0.15 | ▼ -0.06 |
| Hot Rolled Coils | 3,228.00 | ▲ 0.06 | ▲ 0.25 |
| Rebar | 3,054.00 | ▼ -0.07 | ▲ 0.07 |
| Stainless Steel | 14,145.00 | ▲ 2.31 | ▲ 2.86 |
| Iron ore | 762.50 | ▼ -0.07 | ▲ 0.13 |
| Coke | 1,667.00 | ▼ -0.86 | ▲ 0.12 |
| Coking Coal | 1,123.50 | ▼ -0.31 | ▲ 0.40 |
