Iron ore futures increased on Monday, supported by firm steel demand in China and positive economic data.
Chinese steel production remained stable, while mill margins improved amid stronger domestic steel demand and higher finished steel prices. Market participants also noted that weekly declines in port-side iron ore inventories, despite remaining at high levels, supported market sentiment.
China’s Baosteel also announced a 100 yuan (USD 15) per ton price increase for flat steel products for June deliveries, reflecting improving market conditions.
On the macroeconomic side, China’s consumer price index (CPI) increased by 1.2pct YoY and 0.3pct month-on-month in April, according to data from the National Bureau of Statistics (NBS), mainly supported by higher energy and service prices.
Meanwhile, China’s producer price index (PPI) rose by 2.8pct YoY in April, with the growth rate accelerating by 2.3 percentage points compared to March. The NBS attributed the increase mainly to higher prices in petroleum-related sectors, stronger domestic industrial demand, and improving market conditions.
On the Dalian Commodity Exchange, the most-traded September iron ore contract increased by 0.73pct to 822.5 yuan (USD 121) per ton. Coking coal and coke futures rose by 0.85pct and 1.25pct to 1,309 yuan (USD 193) and 1,868 yuan (USD 275) per ton, respectively.
On the Shanghai Futures Exchange, rebar and HRC futures both gained 0.34pct to 3,286 yuan (USD 484) per ton and 3,497 yuan (USD 515) per ton, respectively. Wire rod futures advanced by 1.56pct to 3,455 yuan (USD 508) per ton, while stainless steel futures declined by 0.56pct to 15,185 yuan (USD 2,235) per ton.
1 USD / 6.79 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,455.00 | ▲ 1.56 | ▲ 1.59 |
| Hot Rolled Coils | 3,497.00 | ▲ 0.34 | ▲ 0.69 |
| Rebar | 3,286.00 | ▲ 0.34 | ▲ 0.70 |
| Stainless Steel | 15,185.00 | ▼ -0.56 | ▲ 0.33 |
| Iron ore | 822.50 | ▲ 0.73 | ▲ 0.97 |
| Coke | 1,868.00 | ▲ 1.25 | ▲ 2.14 |
| Coking Coal | 1,309.00 | ▲ 0.85 | ▲ 1.76 |