Macro Tailwinds: Iron Ore Prices Rose Slightly by 1.27% [SMM Brief Commentary]

Dalian iron ore futures were mainly rangebound today. The most-traded contract I2605 closed at 759 yuan/mt, up 1.27% from the previous trading session. The spot price rose 5–7 yuan from the previous trading day. Traders were moderately active in quoting, steel mills remained cautious, and inquiries were limited. Overall spot trading was mediocre.

Fundamentals saw no major changes at present, and today’s price increase was mainly driven by macro factors and news. On the news front, the market circulated that some popular iron ore grades were expected to face tightness in terms of supply, triggering buying that pushed iron ore prices higher. In addition, on the macro front, policy stimulus emerged, and optimistic market sentiment lifted iron ore prices. However, given that the market is still in a pattern of strong supply and weak demand, and the demand side faces the risk of further weakening, market sentiment cannot support a sustained rise over the long term. Therefore, iron ore prices are expected to maintain a fluctuating trend after a round of gains.