Iron ore futures rose on Tuesday after positive Chinese manufacturing data provided support to the market, although concerns over steel demand continued to limit gains.
China’s official Purchasing Managers’ Index (PMI) for the manufacturing sector rose to 50.3 in June from 50.0 in May, returning to expansion territory, according to the National Bureau of Statistics (NBS). The NBS attributed the improvement to stronger production activity and a recovery in market demand. Meanwhile, the official non-manufacturing PMI edged up to 50.2 from 50.1, indicating a modest improvement in services and construction activity.
Despite the positive macroeconomic data, the outlook for iron ore demand remains cautious. Chinese steel traders said steel demand continues to weaken during the seasonal summer slowdown, with no significant demand drivers expected in the near term. Shrinking profit margins at Chinese steel mills could also lead to lower production levels in the coming weeks, weighing on iron ore consumption.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 0.61pct to 747 yuan (USD 110) per ton. Coking coal and coke futures increased 0.99pct and 0.05pct to 1,280.5 yuan (USD 187) per ton and 1,958.5 yuan (USD 288) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures edged up to 3,088 yuan (USD 455) per ton, while HRC futures gained 0.15pct to 3,315 yuan (USD 488) per ton. Wire rod futures rose 0.39pct to 3,381 yuan (USD 498) per ton, while stainless steel futures increased 0.27pct to 14,740 yuan (USD 2,171) per ton.
1 USD / 6.78 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,381.00 | ▲ 0.39 | ▲ 0.35 |
| Hot Rolled Coils | 3,315.00 | ▲ 0.15 | ▼ -0.12 |
| Rebar | 3,088.00 | ▲ 0.03 | ▼ -0.23 |
| Stainless Steel | 14,740.00 | ▲ 0.27 | ▼ -0.20 |
| Iron ore | 747.00 | ▲ 0.61 | ▲ 0.13 |
| Coke | 1,958.50 | ▲ 0.05 | ▼ -1.23 |
| Coking Coal | 1,280.50 | ▲ 0.99 | ▼ -1.09 |