Iron ore futures ease as weak demand weigh on sentiment

Iron ore futures edged lower on Friday, pressured by weak demand fundamentals that continue to weigh on market sentiment.

Both raw material and steel futures struggled this week under multiple headwinds, including renewed U.S.-China trade tensions and sluggish steel consumption. Although higher steel production offered some support for iron ore, it simultaneously dragged on steel prices as domestic inventories kept rising.

Analysts noted that iron ore supply could increase in the months ahead, with Rio Tinto stating this week that it needs a strong finish to meet its year-end shipment target.

Some market watchers believe sentiment may turn if Beijing introduces stimulus measures to boost growth at a key meeting later this month.

On the Dalian Commodity Exchange, the most-traded January iron ore contract slipped 0.19pct to 771 yuan (USD 108.2) per ton, marking a 3pct loss compared with last Friday’s close.

Coking coal futures rose 1.46pct to 1,179 yuan (USD 165), while coke advanced 1.64pct to 1,676 yuan (USD 235) per ton.

On the Shanghai Futures Exchange, rebar edged up to 3,037 yuan (USD 426), HRC dipped 0.16pct to 3,204 yuan (USD 450), wire rod gained 0.72pct to 3,360 yuan (USD 472), and stainless steel rose 0.68pct to 12,560 yuan (USD 1,763) per ton.

1 USD / 7.12 yuan