Iron ore futures were slightly stronger today. DCE's most-traded futures contract I2701 closed at 714 yuan/mt, up 0.85% from the previous trading session. The spot price at Qingdao Port rose 2-3 yuan/mt from the previous trading day. Traders were moderately active in quoting, steel mills' purchases were mostly driven by essential restocking needs, and overall spot trading volume was average.
This week, iron ore fundamentals remained stable, and short-term demand may contract slightly. According to SMM statistics, this week, the impact from blast furnace maintenance on hot metal was 1.3317 million mt, up 20,600 mt WoW. Next week, the impact from blast furnace maintenance on hot metal is expected to be 1.3682 million mt, up 36,500 mt WoW.
On the news front, both parties involved in the Port Hedland strike have not yet reached an agreement on pay. As of now, the strike has lasted for a month; although its impact on overall shipments has been limited, the continued development of the incident has still provided some bullish support for market sentiment. Therefore, overall, in the short term, iron ore price movements may be somewhat bullish under the guidance of sentiment, but the medium and long-term bearish pattern remains unchanged. [SMM Steel]
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