Sentiment Marginally Weakened, Iron Ore Prices in the Doldrums [SMM Brief Review]

Today, the most-traded iron ore futures contract moved downwards after a higher opening and was in the doldrums throughout the day. The most-traded contract I2601 finally closed at 802.5, down 1.23% WoW. Traders showed moderate willingness to sell; steel mills restocked based on demand. The market transaction atmosphere was moderate. In Shandong, the mainstream transaction prices of old PB fines were around 795 yuan/mt, while those of new PB fines were around 785 yuan/mt, down 5 yuan/mt from yesterday. In Tangshan, the transaction prices of PB fines were 800-810 yuan/mt, down 0-5 yuan/mt from yesterday.

According to SMM statistics, the hot metal output affected by blast furnace maintenance this week was 1.0533 million mt, down 93,700 mt WoW. Hot metal production still increased slightly this week, supporting iron ore prices. Recently, macro news has decreased, reducing interference with market prices. Iron ore prices consolidated, and considering the short-term fundamental support, ore prices faced difficulties moving in either direction. It is expected that after adjustment, prices may continue to hold up well.