Prices of iron ore and steel products in China declined on Thursday, pressured by weaker steal demand as stockpiling needs eased after China’s Labor Day holiday.
The most-traded September iron ore on China’s Dalian Commodity Exchange (DCE) traded 0.6 percent lower at 874.50 yuan ($121.06) per metric ton.
The benchmark June iron ore on the Singapore Exchange, however, was 1.7 percent higher at $116.70 a ton.
Other steel-making ingredients on the DCE fell, with coking coal down 2.1 percent at 1,775.50 yuan a ton and coke shedding 1.5 percent to 2,309.50 yuan a ton.
“Demand has been weak post the Labor 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 percent to 3,671 yuan a ton, hot-rolled coil eased 0.6 percent to 3,813 yuan, wire rod decreased 0.4 percent to 3,893 yuan, while stainless steel rose 0.3 percent 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.
