Iron ore futures held steady on Tuesday, as cautious sentiment lingered in post-holiday trading. Market participants remained wary amid ongoing concerns about the global economic outlook.
Last week, China’s Ministry of Commerce revealed that the United States had approached Beijing for talks aimed at addressing tariffs imposed during the Trump administration. China signaled its openness to discussions, raising hopes for a potential easing of trade tensions.
While higher steel production continues to lend support to the iron ore market, recent economic indicators have tempered investor optimism. China’s Services Purchasing Managers’ Index (PMI) fell to 50.7 in April, down from 51.9 in March, indicating a slowdown in the services sector.
The Chinese steel industry is also contending with several challenges, including increased global protectionist measures targeting its exports and rumors of new production curbs. These factors have contributed to a more restrained outlook for iron ore.
On the Dalian Commodity Exchange, the benchmark September iron ore contract closed flat at 704.5 yuan (USD 96.8) per ton. Meanwhile, coke and coking coal futures fell by 2.88pct and 1.73pct, respectively, to 1,502 yuan (USD 207) and 911.5 yuan (USD 125) per ton.
Over on the Shanghai Futures Exchange, the most-traded rebar futures declined by 0.61pct to 3,077 yuan (USD 423) per ton. HRC futures edged down 0.19pct to 3,196 yuan (USD 439), while wire rod futures dropped 0.8pct to 3,455 yuan (USD 475). In contrast, stainless steel futures rose by 0.43pct to 12,735 yuan (USD 1,751) per ton.
1 USD / 7.27 yuan