Iron ore futures prices posted gains on Thursday, supported by a pledge from China’s central bank to support the country’s struggling property sector. However, the demand outlook remained bearish due to weak fundamentals.
The People’s Bank of China (PBOC) held a meeting to promote its funding support aimed at clearing excess housing stock to support the troubled property sector. Analysts, however, are skeptical about its potential to significantly benefit the steel sector.
Furthermore, the long-term demand outlook is weighed down by mounting port-side iron ore inventory and a seasonal slowdown in steel demand, as evidenced by increasing steel inventory at major Chinese warehouses.
In the Dalian Commodity Exchange, iron ore futures for September delivery increased by 0.93pct to 817 yuan (USD 112.7) per ton. Coke futures rose by 1.5pct to 2,263 yuan (USD 312) per ton, while coking coal decreased by 0.25pct to 1,619 yuan (USD 223) per ton.
On the Shanghai Futures Exchange, rebar futures increased by 0.47pct to 3,621 yuan (USD 500) per ton. HRC futures grew by 0.37pct to 3,788 yuan (USD 523) per ton, and wire rod futures increased by 0.16pct to 3,857 yuan (USD 532) per ton. Stainless steel futures, however, decreased by 1.13pct to 13,940 yuan (USD 1,924) per ton.
1 USD / 7.24 yuan
| Material | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
| Wire Rod | 3,857788 | 0.16 | 0.10 |
| HRC | 3,774 | 0.37 | 0.37 |
| Rebar | 3,621 | 0.47 | 0.36 |
| Stainless Steel | 13,940 | -1.13 | -1.29 |
| Iron Ore | 817 | 0.93 | 0.80 |
| Coke | 2,263 | 1.50 | 1.19 |
| Coking Coal | 1,619 | -0.25 | -0.56 |
