Iron ore futures declined on Friday, as easing supply disruption concerns and uncertainty over demand weighed on market sentiment.
Earlier this week, iron ore futures were supported by concerns over potential disruptions at major Australian ports due to Tropical Cyclone Narelle. However, the impact on shipments from the Pilbara region was limited, easing supply concerns.
Improved steel production also lent support during the week, but gains were capped by environmental-related steel output restrictions in Tangshan.
In the spot market, Chinese traders noted that while steel demand has shown some improvement, rising output could pressure finished steel prices if demand does not strengthen further. Export sentiment also remained uncertain amid Middle East tensions.
Higher port-side iron ore inventories continued to weigh on the market outlook.
On the Dalian Commodity Exchange, the most-traded May iron ore contract fell 0.49pct to 812 yuan (USD 117.4) per ton, though it was still up 0.56pct compared with last Friday’s close.
Coking coal and coke futures declined by 1.46pct and 1.04pct to 1,219 yuan (USD 176) and 1,752 yuan (USD 253) per ton, respectively.
On the Shanghai Futures Exchange, rebar futures slipped 0.22pct to 3,124 yuan (USD 452) per ton, while HRC futures fell 0.27pct to 3,299 yuan (USD 477) per ton. Wire rod futures declined 0.66pct to 3,307 yuan (USD 478), and stainless steel futures dropped 0.59pct to 14,390 yuan (USD 2,082) per ton.
1 USD / 6.91 yuan
| Item | Closing Price (in yuan) | Difference from Night Session (pct) | Difference from Previous Morning Session (pct) |
|---|---|---|---|
| Wire Rod | 3,307.00 | ▼ -0.66 | ▼ -0.45 |
| Hot Rolled Coils | 3,299.00 | ▼ -0.27 | ▼ -0.18 |
| Rebar | 3,124.00 | ▼ -0.22 | ▼ -0.13 |
| Stainless Steel | 14,390.00 | ▼ -0.59 | 0.00 |
| Iron ore | 812.00 | ▼ -0.49 | ▼ -0.62 |
| Coke | 1,752.00 | ▼ -1.04 | ▼ -0.51 |
| Coking Coal | 1,219.00 | ▼ -1.46 | ▼ -0.90 |
