Iron ore futures trended stronger today. The most-traded DCE contract I2701 closed at 726.5 yuan/mt, up 1.32% from the previous trading day. Spot prices at Qingdao Port rose by an average of 12-14 yuan/mt. Trader offers were generally lukewarm, steel mills mostly purchased as needed, and overall spot trading activity was moderate.
Currently, iron ore demand has shown signs of a structural inflection point, with steel mills preferring cost-effective fine ore over high-premium pellet and lump ore. According to SMM survey data on main port inventories, coarse fines have been destocking for two consecutive weeks, the destocking pace for concentrates and lump ore has slowed, and pellet inventories have seen a slight buildup. Total sample inventories stood at 104.82 million mt, down 20,000 mt MoM. In addition, affected by persistently rising coke prices, some steel mills in certain regions have considered production cuts to adjust their production pace due to tight coke supply, which may put short-term iron ore demand under pressure as well. Overall, the short-term rise in iron ore prices may slow down, shifting into a sideways consolidation pattern. [SMM Steel]
![Magnesium Prices Rise for Three Consecutive Sessions! Cost Side Remains "Burning Hot" While Demand Side Struggles to Take Over [SMM Commentary]](https://imgqn.smm.cn/usercenter/EutUV20251217171724.jpeg)
![[SMM coking coal and coke inventory] This week, coke inventory at coking enterprises was 449,000 mt](https://imgqn.smm.cn/usercenter/EXHJE20251217171720.jpg)
