HANOI: Prices of iron ore and steel products in China declined on Thursday, pressured by weaker steel demand as stockpiling needs eased after China’s Labour Day holiday.
The most-traded September iron ore on China’s Dalian Commodity Exchange (DCE) traded 0.6% lower at 874.50 yuan ($121.06) per metric ton as of 0411 GMT.
The benchmark June iron ore on the Singapore Exchange, however, was 1.7% higher at $116.70 a ton, as of 0401 GMT. Other steel-making ingredients on the DCE fell, with coking coal down 2.1% at 1,775.50 yuan a ton and coke shedding 1.5% to 2,309.50 yuan a ton.
“Demand has been weak post the Labour Day long holidays and we’ve had three consecutive days of physical volumes trading lower,” a trader said.
Steel mills have pushed back against higher price offers from coking coal plants in the physical market, the trader added. Steel benchmarks on the Shanghai Futures Exchange (SHFE) were mostly down but remained above their technical support levels, the trader said, adding that whether they can stay above those levels depends on how the physical demand performs.
SHFE rebar slid 0.8% to 3,671 yuan a ton, hot-rolled coil eased 0.6% to 3,813 yuan, wire rod decreased 0.4% to 3,893 yuan, while stainless steel rose 0.3% to 14,205 yuan.
Embattled Chinese developer Country Garden said it is unable to pay onshore coupons due on Thursday, highlighting the continued issues in China’s property sector, a major consumer of steel. However, China’s pledges to reduce housing inventory provided some support to ferrous prices.
Source: Brecorder
