Strong Supply and Demand for Iron Ore, Sideways Movement in Iron Ore Price Range [[SMM Commentary]]

Today, the DCE iron ore futures fluctuated rangebound, with the most-traded contract I2509 closing at 710.5, down 0.49% for the day. Traders' willingness to sell was moderate; some steel mills were still in the process of restocking, showing relatively strong purchase willingness. The market trading atmosphere was moderate. The mainstream transaction prices of PB fines in Shandong were around 762-765 yuan/mt, up 2-5 yuan/mt from yesterday; the transaction prices of PB fines in Tangshan were around 770-780 yuan/mt, up 5 yuan/mt from yesterday. The total global iron ore shipments reported by SMM were 34.2 million mt, increasing by 2.88 million mt WoW, a 9.2% increase. The total iron ore arrivals in China reported by SMM were 28.06 million mt, significantly increasing by 6.46 million mt WoW, a 29.9% increase. Although supply has rebounded, the current port inventory is lower than last year, exerting a relatively small suppressive effect on ore prices. Currently, the overall demand for iron ore remains high, but before the news of crude steel production cuts is confirmed, it will continue to suppress iron ore prices. It is expected that ore prices will mainly fluctuate rangebound in the short term.

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