Iron ore futures trended lower today. The most-traded DCE I2609 contract closed at 715 yuan/mt, down 3.31% from the previous trading session. Spot prices at Qingdao Port fell 15-20 yuan/mt from the previous trading day. Trader quoting enthusiasm was low, steel mill procurement was mostly for rigid demand, and overall spot transaction sentiment was sluggish.
From a fundamental perspective, iron ore inventory continued structural divergence. Total inventory at 10 ports tracked by SMM stood at 106.92 million mt, up 1.29 million mt MoM, mainly driven by buildup of coarse fines and lump ore, while pellet inventory remained at a four-year low. From a macro perspective, escalating US-Iran tensions and their spillover triggered panic sentiment in the market, which spread to the iron ore futures market, a risk product, leading to sell-offs and dragging down overall prices. In the short term, iron ore prices may continue to decline amid panic sentiment. [SMM Steel]
![Surge in Port Arrivals Combined with Inventory Buildup at Ports, Significant Pullback in Hot Metal Production, and Iron Ore Most-Traded Contract Hitting a New Low in Over a Year [SMM Commentary]](https://imgqn.smm.cn/usercenter/JSngP20251217171719.jpg)
