Iron ore futures extended their losses on Tuesday as weak steel demand and ample supply continued to weigh on market sentiment.
The key steelmaking raw material remains under pressure from rising global supply and high inventories at Chinese ports, both of which are seen as major headwinds for prices.
Market participants noted that seasonal weakness in steel consumption during the summer months is likely to squeeze Chinese steelmakers’ margins, prompting further production cuts to balance supply with slowing demand.
Sentiment was also affected by a sharp decline in coking coal futures. Earlier concerns over supply disruptions following a major mine accident in China’s Shanxi province have eased as several mines resumed operations, increasing supply expectations.
Chinese steel traders described market sentiment as pessimistic, citing the seasonal slowdown and the lack of near-term bullish drivers.
On the Dalian Commodity Exchange, the most-traded September iron ore contract slipped 0.2pct to 760 yuan (USD 112.2) per ton. Coking coal and coke futures fell 6.66pct and 3.99pct to 1,360 yuan (USD 201) per ton and 1,961 yuan (USD 290) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures edged down to 3,156 yuan (USD 466) per ton, while HRC futures declined 0.59pct to 3,361 yuan (USD 496) per ton. Wire rod futures rose slightly to 3,361 yuan (USD 496) per ton, while stainless steel futures fell 1.09pct to 14,505 yuan (USD 2,141) per ton.
1 USD / 6.77 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,361.00 | ▲ 0.15 | ▲ 0.03 |
| Hot Rolled Coils | 3,361.00 | ▼ -0.59 | ▼ -0.36 |
| Rebar | 3,156.00 | ▼ -0.19 | ▼ -0.03 |
| Stainless Steel | 14,505.00 | ▼ -1.09 | ▼ -1.10 |
| Iron ore | 760.00 | ▼ -0.20 | ▲ 0.13 |
| Coke | 1,961.00 | ▼ -3.99 | ▼ -3.11 |
| Coking Coal | 1,360.00 | ▼ -6.66 | ▼ -5.11 |