Iron ore futures slide as weak steel demand persists

Iron ore futures extended their losses on Thursday, pressured by ongoing weak steel demand. Traditionally, steel demand slows during the summer, but it has been further impacted by heavy rainfall in several regions of China.

Weak margins for steel mills and higher port-side iron ore inventory continue to weigh on the outlook for iron ore, keeping it bearish.

On the Dalian Commodity Exchange, iron ore futures for September delivery decreased by 0.92pct to 811.5 yuan (USD 112.2) per ton. Dalian coke and coking coal futures also saw declines, dropping by 2.01pct and 0.51pct to 2,219.5 yuan (USD 307) and 1,564 yuan (USD 216) per ton, respectively.

On the Shanghai Futures Exchange, rebar futures decreased by 0.82pct to 3,492 yuan (USD 483) per ton. HRC futures declined by 0.76pct to 3,673 yuan (USD 508) per ton. Wire rod futures fell by 1.5pct to 3,609 yuan (USD 499) per ton, while stainless steel futures decreased by 0.22pct to 13,835 yuan (USD 1,913) per ton. Despite these drops, all steel futures except wire rod posted gains compared to the previous morning’s session.

1 USD / 7.23 yuan