Monetary Policy Is Expected to Strengthen, Iron Ore Prices May Hold Up Well [SMM Brief Review]

Today, the iron ore futures fluctuated rangebound, with a late-session plunge, and remained in the doldrums throughout the day. The most-traded contract I2509 finally closed at 699, down 1.76% for the day. Traders' willingness to sell was moderate; as the weekend approached, steel mills' purchase willingness weakened. The market transaction atmosphere was sluggish. In Shandong, the mainstream transaction prices of PB fines were around 755-760 yuan/mt, down 5-10 yuan/mt from yesterday; in Tangshan, the transaction prices of PB fines were around 760-765 yuan/mt, down 5-10 yuan/mt from yesterday. This week, the unloading efficiency at northern ports was affected by strong winds, leading to a decline in port arrivals. Therefore, despite a slight decrease in port pick-up volume, port inventory still dropped by 2.85 million mt. Next week, the fundamentals of iron ore are expected to remain strongly supported, and considering the strengthening monetary policy expectations, ore prices may continue to hold up well.

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