No new catalysts are present, and iron ore futures are in the doldrums [SMM Brief Review]

Published: Feb 2, 2026 18:02

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DCE iron ore futures were in the doldrums today, with the most-traded contract I2605 settling at 783 yuan/mt, down 1.26% from the previous trading session. Spot prices fell by 5-8 yuan/mt. Most traders followed the market trend, while steel mills procured based on rigid demand, resulting in low inquiry activity and an overall sluggish trading atmosphere. Looking ahead, as steel mills' pre-holiday restocking cycle nears its end, market activity is expected to decline significantly after this week's concentrated restocking. The previous logic of buy-side support underpinning prices faces the risk of fading. Meanwhile, constrained by both profit compression and environmental protection-driven production restrictions, steel mills generally lack the willingness to ramp up production, suggesting potential periodic contraction in iron ore demand. Overall, with restocking support fading, demand weakening, and port inventories remaining high, iron ore prices are expected to continue trading in the doldrums in the near term.

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