Chinese iron ore, coke futures fall again on soft demand, high steel inventories

reuters.com Iron Ore,  futures 2018-03-14 08:17:00

Chinese iron ore futures declined for the seventh consecutive session to hit a nearly fourth-month low as steelmaking raw materials were pressured by soft demand for the metal and high product inventories held by trading companies.


Dalian iron ore futures tumbled more than 3% to an intraday low of 475.5 yuan/t ($75.12/t) on March 13, its deepest level since November 20.


Iron ore was at 477.5 yuan/t by the midday break, down 3%.


The most active rebar on the Shanghai Futures Exchange also dropped for a seventh straight session, with steel demand failing to pick up as quickly as expected after the week-long Chinese New Year break in February.


Rebar was 0.6% lower at 3,717 yuan/t at midday.


High inventories of steel rebar products, mainly used for construction, have prompted some traders to sell their stocks at a loss and driven down prices.


Stockpiles of rebar inventory held in warehouses by traders rose to 9.64 million tonnes as of March 9, the highest since April 2013.


"This all weighed on iron ore, with futures being sold heavily around Asia," ANZ said in a research note.


"This bearish mood also weighed on coking coal prices. Premium hard coking coal fell sharply, as shrinking margins at steel mills reduced their appetite for coal. However, easing concerns about further weather-related supply issues also weighed on the market," ANZ said.


On the Dalian Commodity Exchange, coke dropped more than 3% to 2,003.5 yuan/t on March 13, the lowest in more than a month. At the break, coke was down 3.2% at 2,013 yuan/t.


Coking coal was down 1.8% at 1,294 yuan/t at midday, after earlier hitting 1,285.5 yuan/t, the lowest since February.


Iron ore for delivery to China's Qingdao port .IO62-CNO=MB dropped $3.14/t to $70.09/t on March 9 from the previous day, according to Metal Bulletin.


(Writing by Jessie Jia  Editing by Harry Huo)
For any questions, please contact us by inqury@fwenergy.com or +86-351-7219322.

Share this article
Connect with us

Editors Recommendations

1 Weekly China coal market news summary (Jun 11 – Jun 15) 2018-06-15

China to launch broader environmental inspections this month China will expand environmental inspections to more cities and regions in a new round of checks from this month to April next yea

2 China May coal imports dip 1.28% YoY from Newcastle terminals 2018-06-15

China imported 985,600 tonnes of coal from Australian Newcastle terminals (Carrington and Kooragang) in May, dipping 1.28% from a year ago and slumping 34.09% from a month before, showed data from the

3 China Coal Daily Track (Jun 15) 2018-06-15

Thermal coal Domestic market Thermal coal prices edged up in Shaanxi amid low stocks and robust sales. Prices continued climbing in Ordos of Inner Mongolia thanks to limited output at

4 China's coal import policy remains unclear, foreign prices stay firm 2018-06-15

China is yet to reveal any official statement on relaxing coal import curbs at coastal ports, although some sources said restrictions had already been eased at some ports, traders said. A

5 China's spot thermal coal offers weaken on slid purchase 2018-06-15

Offer prices of spot thermal coal fell back at northern China ports, frustrated mainly by decreased buying appetite from power plants amid strong wait-and-see sentiment. "Prices dropped q

6 China Shenhua May polythene sales surge 57.5pct YoY 2018-06-15

China Shenhua Energy Co., Ltd, one world-class coal-based integrated energy company, sold 32,600 tonnes of polythene (PE) in May, an 57.5% increase on the year, said the company in a statement late Ju

7 China Shenhua May commercial coal output 2.5% YoY 2018-06-15

China Shenhua Energy Co., Ltd, a listed arm of China Energy Investment Corporation, produced 24.7 million tonnes of commercial coal in May, edging up 2.5% year on year and 2.92% month on month, the co

8 China's Tianjin set to switch vehicle fuel to ethanol gasoline from Oct 2018-06-15

Northern China's metropolis Tianjin is set to introduce ethanol gasoline to replace the regular one and complete the entire switch before October, said the municipal governmental in a plan on June

9 Asian coal, gas markets roar into top gear 2018-06-15

Thermal coal and gas prices have coursed into a bull run, propelled by particularly strong demand across Asia, where electricity consumption is surging thanks to healthy economic growth just as season

10 China steel output jumps to record despite smog campaign 2018-06-14

China's steel output surged to a record in May as mills ramped up production to chase fat profit margins, with a strong outlook for demand likely to keep mills running at nearly full capacity for the

Most Read Articles

1 China to launch broader environmental inspections this month 2018-06-11

China will expand environmental inspections to more cities and regions in a new round of checks from this month to April next year, the Ministry of Ecology and Environment (MEE) said in a statement on

2 China's major coal miners vow to ensure supply and stabilize prices 2018-06-12

While CHN Energy announced late last week to lower their June contract coal price within the "yellow range" below 600 yuan/t, more major miners have promised to lower prices to ensure adequate supply

3 Major Chinese miners work to stabilize thermal coal prices 2018-06-11

Some leading miners in China made price adjustments in response to government's call for stabilizing thermal coal price and supply, sources said. China Energy Investment Cor

4 CHN Energy reduces contract coal prices within 600 yuan/t, sources 2018-06-11

China Energy Investment Group, also known as CHN Energy, announced to control its monthly contract prices of thermal coal, media reported late June 8, in a way to cool down the overheated coal market.

5 Weekly China met. coke market analysis and forecast 2018-06-12

Coke producers in China's main production areas of Shanxi, Shandong and Hebei adjusted up their selling prices again by 100 yuan/t from June 8, the first rise this month and the seventh in a row si

6 China's steel mills utilisation rate falls for 3rd week on environmental checks 2018-06-12

Utilisation rate at steel blast furnaces across China fell for a third consecutive week last week as of June 8, data showed, as environmental inspections continued to weigh on operation at steel mills

7 Plan to merge pipeline assets of three energy giants on track in China 2018-06-13

China is pushing ahead with a plan to combine oil and gas pipeline assets of three State-owned energy giants into a new company, Bloomberg reported. The specific reform plan is

8 China proceeds development of coal-to-oil conversion 2018-06-15

China is developing new energy sources by converting coal into diesel. The world's first coal to diesel conversion production line, in China's Inner Mongolia autonomous region, produced 8

9 China's 20 large steel makers launch maintenance to improve environment 2018-06-14

A total 20 Chinese large steel makers have launched maintenances since June 11, said the Ministry of Ecology and Environment days earlier, in a move to strengthen environmental inspections at key poll

10 China's raw coal output rises to a new high in May 2018-06-14

China's raw coal production registered a new high in May since this year, according to official data, as miners churned out the material driven mainly by tempting profit and rallying prices.