Today, the DCE iron ore futures trended in the doldrums. The most-traded I2609 contract closed at 764 yuan/mt, down 0.33% from the previous trading session. Port spot prices were unchanged from the previous day. Traders showed moderate quoting activity; steel mills purchased as needed with few inquiries, and spot trading volume was low so far.
According to SMM survey data, as of today, total iron ore inventory at major Chinese ports reached 149.35 million mt, up 960,000 mt WoW. Inventory edged up slightly, while average daily port pick-up volume edged up by 68,000 mt to 3.268 million mt. Overall, iron ore supply was on the loose side, placing strong downward pressure on ore prices. Additionally, the seventh round of coke price increases was formally announced today, and steel mill profits are expected to contract, intensifying market bearish sentiment on iron ore prices. Overall, ore prices currently face significant resistance to gains and are expected to continue hovering at lows in the near term.
