Iron ore futures continued their decline on Thursday, despite gains earlier in the session, as uncertainty surrounding Beijing’s stimulus measures weighed on the market.
Futures initially rose after reports that China’s finance ministry would reveal plans for fiscal stimulus to boost the economy during a highly anticipated news conference on Saturday. However, market sentiment turned cautious later in the session as doubts about the specifics of the stimulus grew.
Losses were tempered by a decline in steel inventory at major Chinese warehouses, indicating strong domestic demand during the peak consumption season in October. Additionally, major steel producer Baosteel sharply raised its hot-rolled steel prices by 500 yuan (USD 71) per ton, reflecting a positive market outlook.
On the Dalian Commodity Exchange, the most-traded iron ore contract fell 1.02pct to 775.5 yuan (USD 109.6) per ton. Coke and coking coal futures also declined, dropping 2.56pct and 3.23pct, respectively, to close at 2,094.5 yuan (USD 296) and 1,436.5 yuan (USD 203) per ton.
Meanwhile, on the Shanghai Futures Exchange, rebar futures fell 1.66pct to 3,442 yuan (USD 487) per ton, and HRC futures dropped 0.89pct to 3,578 yuan (USD 506) per ton. Wire rod futures declined by 1.57pct to 3,700 yuan (USD 523) per ton, while stainless steel futures slipped 0.36pct to 13,965 yuan (USD 1,974) per ton.
1 USD / 7.07 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,700 |
-1.57 |
-0.54 |
| HRC | 3,578 |
-0.89 |
0.20 |
| Rebar | 3,442 |
-1.66 |
-0.70 |
| Stainless Steel | 13,965 |
-0.36 |
-0.04 |
| Iron Ore | 775.5 |
-1.02 |
-0.26 |
| Coke | 2,094.5 |
-2.56 |
-1.62 |
| Coking Coal | 1,436.5 |
-3.23 |
-2.02 |
