Negotiations Made Progress; Middle East Situation Remained Volatile, Iron Ore Prices Under Further Pressure [SMM Imported Ore Daily Brief]

DCE iron ore futures showed an overall weak trend today. The most-traded contract I2609 ultimately closed at 750 yuan/mt, down 2.53% from the previous trading session. Spot prices fell 7-12 yuan/mt from the previous trading day. Traders showed moderate enthusiasm in quoting, steel mills restocked on an as-needed basis, and inquiries were few; as of now, spot market transactions remained thin.
  
On fundamentals, SMM's 10-port inventory sample survey data showed that inventory levels reached 115.94 million mt, down 3.37 million mt WoW. As profits were under pressure, steel mills generally prioritized the cost-effectiveness of raw materials. High-premium varieties saw a significant inventory buildup, while high-inventory varieties saw notable inventory declines. As a result, trading volume continued to be sluggish, putting prices under pressure.

News side, reports emerged of major progress in negotiations, further fueling market expectations of a looser future supply landscape, creating notable resistance for ore prices. Meanwhile, the Strait of Hormuz was reopened and then closed again, reigniting expectations of a prolonged Middle East situation. Therefore, iron ore prices are likely to exhibit a weak trend in the short term.