China: Steel futures fall even as iron ore futures defy gravity

China’s steel futures continued to drop by over 3% d-o-d on 3 Aug’21, while Dalian iron ore futures climbed 0.8% on expectations of relaxation in steel production cuts. Closing prices of the most-traded iron ore and steel futures contracts:

• DCE iron ore futures Sept contract closed at RMB 1,062.5/t ($164) (+RMB 8.5)
• SGX iron ore futures Sept contract closed at $179.15/t (+1.75)
• SHFE rebar futures Oct contract closed at RMB 5,247/t ($812) (-RMB 167)
• SHFE HRC futures Oct contract closed at RMB 5,608/t ($867) (-RMB 172)