Steelmaking raw materials and steel futures slumped on Thursday as weak steel demand continued to weigh on market sentiment.
According to the China Iron and Steel Association (CISA), daily crude steel output among member mills averaged 2.15 mln tons per day during July 11-20, a 0.2pct decrease from the previous ten days and a 4.4pct decline from the same period last year.
The decline in steel production is attributed to weak margins at steel mills, prompting many to bring forward maintenance plans.
On the Dalian Commodity Exchange, iron ore futures for September delivery fell by 1.55pct to 764.5 yuan (USD 105.1) per ton. Dalian coke and coking coal futures decreased by 1.95pct and 1.24pct to 2,062 yuan (USD 284) and 1,474 yuan (USD 203) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures dropped by 2.03pct to 3,329 yuan (USD 458) per ton. HRC futures fell by 1.73pct to 3,518 yuan (USD 484) per ton. Wire rod futures plunged by 4.46pct to 3,360 yuan (USD 462) per ton, and stainless steel futures decreased by 2.13pct to 13,765 yuan (USD 1,893) per ton.
1 USD / 7.27 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,360 |
-4.46 |
-4.91 |
| HRC | 3,518 |
-1.73 |
-1.85 |
| Rebar | 3,329 |
-2.03 |
-2.04 |
| Stainless Steel | 13,765 |
-2.13 |
-1.96 |
| Iron Ore | 764.5 |
-1.55 |
-1.31 |
| Coke | 2,062 |
-1.95 |
-1.60 |
| Coking Coal | 1,474 |
-1.24 |
-0.54 |
