DCE iron ore futures trended weaker today. The most-traded contract I2609 ultimately closed at 783.5 yuan/mt, down 0.32% from the previous trading session. Spot prices fell 0-2 yuan/mt as of now. Traders were active in quoting, while steel mill purchases were mostly for rigid demand; overall spot transactions were thin.
According to an SMM survey, total inventories across 10 ports this week were 114.32 million mt, down 1.16 million mt WoW. Lump ore and high-grade ore saw notable destocking, indicating strong demand from steel mills for higher ore grades. Combined with the current blast furnace utilization rate of sample steel mills exceeding 90%, downside support for ore prices is expected to remain solid.
Additionally, there was no further news on whether previously restricted port inventories would be released, and bearish sentiment in the market gradually faded. Therefore, iron ore prices are expected to maintain a fluctuating trend at highs in the short term.
