Iron ore futures post gains on Wednesday, supported by a positive near-term demand outlook, although gains were limited by ongoing supply concerns.
Iron ore futures were supported by steady demand from Chinese steel mills, with production levels remaining firm and sustaining iron ore consumption. Sentiment was also aided by potential US-Iran peace talks, which could ease logistics disruptions that have recently affected Chinese steel exports to the Middle East.
However, upside remained capped by ample supply, with portside iron ore inventories near high levels and a partial easing of restrictions on BHP cargoes adding to market pressure.
In the spot market, Chinese steel traders said demand conditions have yet to show significant improvement, highlighting the need for stronger drivers to sustain the uptrend.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 0.99pct to 764 yuan (USD 112) per ton. Coking coal and coke futures increased by 1.93pct and 3.11pct to 1,083 yuan (USD 159) and 1,691 yuan (USD 248) per ton, respectively.
On the Shanghai Futures Exchange, rebar gained 0.26pct to 3,103 yuan (USD 455) per ton, while HRC rose 0.34pct to 3,290 yuan (USD 482) per ton. Wire rod edged lower to 3,269 yuan (USD 479) per ton, while stainless steel increased 1.54pct to 14,810 yuan (USD 2,171) per ton.
1 USD / 6.82 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,269.00 | ▼ -0.09 | ▼ -0.12 |
| Hot Rolled Coils | 3,290.00 | ▲ 0.34 | ▲ 0.33 |
| Rebar | 3,103.00 | ▲ 0.26 | ▲ 0.29 |
| Stainless Steel | 14,810.00 | ▲ 1.54 | ▲ 1.01 |
| Iron ore | 764.00 | ▲ 0.99 | ▲ 0.72 |
| Coke | 1,691.00 | ▲ 3.11 | ▲ 2.72 |
| Coking Coal | 1,083.00 | ▲ 1.93 | ▲ 1.66 |
