Port Arrivals Decline Sharply, but Iron Ore Prices Remain Under Pressure [SMM Iron Ore Daily Review]

Today, iron ore futures were subdued. The most-traded DCE contract I2701 closed at 706.5 yuan/mt, down 0.70% from the previous trading session. Spot prices at Qingdao Port fell by 2-4 yuan/mt from the previous trading day. Trader activity was moderate, steel mills purchased as needed, and overall spot transactions were limited. Last week, SMM global iron ore shipment volume totaled 33.54 million mt, edging up 4% WoW, with a cumulative YoY increase of 1%. According to market data, iron ore inventories at major Australian loading ports also remained at relatively high levels. Therefore, in the short term, iron ore shipments still have room to grow, capping the upside room for future price increases. In addition, affected by typhoon weather, SMM China iron ore port arrivals totaled 18.61 million mt last week, down sharply by 37% WoW, with a cumulative YoY increase of 4%. Although port arrivals declined sharply, current iron ore inventories remained at high levels and did not actually affect the market. In the short term, the iron ore supply side is expected to remain loose. Therefore, in terms of fundamentals, iron ore prices will continue to consolidate on a subdued note until new information enters the market. [SMM Steel]