Market Risk Aversion Sentiment Grows as Two Sessions Approach, Iron Ore Prices Fluctuate Downward [SMM Brief Commentary]

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Today, DCE iron ore futures continued to fluctuate downward. The most-traded I2505 contract finally closed at 799.5 yuan/mt, down 0.74% for the day. Traders' willingness to sell weakened; steel mills remained cautious, with average purchase willingness over the weekend; and market transaction sentiment was sluggish. In Shandong, mainstream transaction prices for PB fines were at 800 yuan/mt, down 5 yuan/mt from yesterday. In Tangshan, PB fines transaction prices were around 810-815 yuan/mt, with the high end down 0-5 yuan/mt from yesterday. On the evening of February 27, Trump announced once again that a 10% tariff would be imposed on Chinese exports to the US starting March 4. This move undoubtedly dealt a heavy blow to the already fragile market sentiment, further exacerbating pessimism in the market. The Two Sessions will be held next week, and if the outcomes fall short of market expectations, it will undoubtedly impact market confidence. Iron ore prices are expected to face further downward pressure.