Market Transactions Sluggish as Weekend Approaches; Ore Prices Expected to Move Sideways Next Week [SMM Iron Ore Daily Review]

Today, iron ore futures moved sideways, with the most-traded DCE I2609 contract closing at 762 yuan/mt, edging up 0.53% from the previous day's closing price. Most spot prices edged up 0-2 yuan/mt. Traders sold in line with market conditions. As the weekend approached, steel mills' purchase willingness was weak, and market trading sentiment was muted.

As of July 17, the latest SMM data showed that total iron ore inventory at 35 main ports nationwide was 145.13 million mt, down 2.03 million mt MoM, with overall inventory destocking again. Over the same period, the daily average port pick-up volume edged down 55,000 mt to 3.22 million mt. This week, due to short-term weather disruptions, port arrivals at some ports dropped significantly, notably tightening resource supply. Looking ahead to next week, although iron ore demand is expected to weaken further, the US-Iran conflict and long-term contract negotiations will continue to disrupt the futures market. Ore prices are expected to maintain a consolidation pattern next week.