Increased Demand for Iron Ore Drives Up Ore Prices [SMM Brief Review]

Today, the iron ore futures continued to shift from weak to strong. The most-traded contract I2505 surged to 797 before slightly retreating, eventually closing at 792, with a daily gain of 1.86%. Traders were active in selling, while steel mills restocked based on demand. The market transaction atmosphere improved. In Shandong, the mainstream transaction prices for PB fines were around 785-790 yuan/mt, up 10-15 yuan/mt from yesterday. In Tangshan, the transaction prices for PB fines were near 800 yuan/mt, also up 10-15 yuan/mt from yesterday. According to SMM statistics, the impact from maintenance on blast furnaces this week was 123.6, down 108,000 mt WoW, and it is expected to decrease by another 117,800 mt next week. The continued growth in pig iron production has driven the demand for iron ore, supporting ore prices. Meanwhile, recent improvements in market sentiment have also contributed to the shift from weak to strong iron ore prices. Considering the imminent implementation of US tariffs on China, which may disrupt ore prices, there is some risk-averse sentiment in the market. It is expected that ore prices will fluctuate rangebound in the short term.

》Order to view SMM metal spot historical prices