Iron ore faces both pressure and support, and is likely to continue moving sideways in the short term [SMM Iron Ore Daily Review].

Iron ore futures held steady in the morning before weakening, with losses widening in the afternoon. As of the close, the most-traded DCE I2701 futures contract closed at 716.5 yuan/mt, edging down 0.28% from the prior trading day. In the spot market, prices of mainstream varieties followed with a decline of around 4 yuan/mt; traders mostly sold actively in line with market trends, while steel mills mainly purchased as needed, with overall trading sentiment being moderate.
From industry data, according to SMM statistics, rebar inventories edged down this period, but HRC inventories continued to accumulate, with end-use demand showing no significant improvement yet. Meanwhile, coke prices have undergone two consecutive rounds of increases, and expectations for a third round of price hikes remain, further squeezing steel mill profit margins and indirectly weighing on ore prices. However, expectations for hot metal output growth, coupled with persistently rising ocean freight rates, mean the cost side still provides some support for ore prices. Overall, short-term iron ore prices are finding it difficult to move either up or down and are expected to consolidate within a range.