Iron Ore Prices Continue to Hit Bottom, Market Trading Sluggish [SMM Daily Imported Ore Review]

Today, the most-traded iron ore contract continued to hit bottom, with the most-traded I2609 contract closing at 739.5 yuan/mt, down 0.87%. Port spot prices fell 3-5 yuan/mt from pre-holiday levels. Traders were reluctant to sell, mostly halting offers; steel mills showed increased wait-and-see sentiment, with some purchasing as needed. The overall market trading atmosphere was sluggish. As of now, very few deals were concluded.

Last week, SMM global iron ore shipments totaled 32.98 million mt, down 7.62% WoW, while cumulative shipments rose 1.9% YoY. Among them, shipments from Australia and Brazil both declined; from non-mainstream countries, shipments edged up slightly. In addition, last week, SMM China iron ore arrivals totaled 27.81 million mt, down 7.14% WoW, with cumulative arrivals up 5.85% YoY. Supply pressure eased somewhat this week. However, as steel mill losses deepened and blast furnace maintenance increased, hot metal production was estimated to decline this week. Iron ore demand weakened, leaving ore prices under downward pressure.