Iron ore futures rose sharply on Thursday, supported by improved demand indicators and positive macro sentiment, although supply-side pressures remain.
China Iron and Steel Association (CISA) data showed member mills’ output increased by 5.6pct in early April compared with late March to 2.1 mln tons, indicating continued strength in steel production and stable mill margins.
Domestic steel demand also remained firm, with inventories of finished steel at major warehouses continuing to decline.
Macro factors further supported sentiment, with China’s economy expanding by 5pct in the first quarter, in line with the government’s annual target range of 4.5-5pct. Optimism over potential US-Iran talks also lent support, easing concerns over geopolitical disruptions.
However, high iron ore inventories at Chinese ports continue to act as a key headwind. Rising protectionist measures against Chinese steel exports and potential energy cost volatility linked to geopolitical developments could also weigh on the outlook.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 3.1pct to 782.5 yuan (USD 114.7) per ton. Coking coal and coke futures increased by 1.84pct and 1.01pct to 1,248 yuan (USD 183) and 1,795.5 yuan (USD 263) per ton, respectively.
On the Shanghai Futures Exchange, rebar gained 1.06pct to 3,133 yuan (USD 459) per ton, while HRC rose 1.22pct to 3,326 yuan (USD 487) per ton. Wire rod increased 0.43pct to 3,286 yuan (USD 482) per ton, while stainless steel remained unchanged at 14,820 yuan (USD 2,172) per ton.
1 USD / 6.82 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,286.00 | ▲ 0.43 | ▲ 0.52 |
| Hot Rolled Coils | 3,326.00 | ▲ 1.22 | ▲ 1.08 |
| Rebar | 3,133.00 | ▲ 1.06 | ▲ 0.96 |
| Stainless Steel | 14,820.00 | 0.00 | ▲ 0.07 |
| Iron ore | 782.50 | ▲ 3.10 | ▲ 2.36 |
| Coke | 1,795.50 | ▲ 1.01 | ▲ 5.82 |
| Coking Coal | 1,248.00 | ▲ 1.84 | ▲ 13.22 |
