Iron ore futures edged higher on Monday as relatively high Chinese steel production continued to provide near-term support. However, gains remained limited as high portside inventories, shrinking steel mill margins and weak finished steel demand continued to weigh on the market.
Analysts said crude steel output, while gradually easing, remains at relatively high levels, providing near-term support to iron ore demand and preventing a sharper decline in prices.
A modest improvement was also seen in China’s spot steel market, with rebar and HRC prices edging higher. However, market sources said high finished steel inventories are expected to continue pressuring steel prices in the near term.
Shrinking steel mill margins and high iron ore inventories at Chinese ports also remained key bearish factors, limiting any sustained upside in iron ore prices.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 0.14pct to 738 yuan (USD 108.5) per ton. Coking coal and coke futures increased 0.23pct and 0.93pct to 1,283.5 yuan (USD 189) per ton and 1,951 yuan (USD 287) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures gained 0.23pct to 3,072 yuan (USD 452) per ton, while HRC futures rose 0.34pct to 3,289 yuan (USD 484) per ton. Wire rod futures fell 0.51pct to 3,340 yuan (USD 491) per ton, while stainless steel futures advanced 0.92pct to 14,740 yuan (USD 2,169) per ton.
1 USD / 6.79 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,340.00 | ▼ -0.51 | ▼ -0.33 |
| Hot Rolled Coils | 3,289.00 | ▲ 0.34 | ▲ 0.30 |
| Rebar | 3,072.00 | ▲ 0.23 | ▲ 0.33 |
| Stainless Steel | 14,740.00 | ▲ 0.92 | ▲ 1.12 |
| Iron ore | 738.00 | ▲ 0.14 | ▲ 0.54 |
| Coke | 1,951.00 | ▲ 0.93 | ▲ 0.67 |
| Coking Coal | 1,283.50 | ▲ 0.23 | ▲ 0.12 |