Continuous Sharp Decline in Iron Ore for Two Consecutive Days, Relatively Small Downward Space for Iron Ore Prices [SMM Brief Review]

Published: Jan 6, 2025 17:53

Save

Today, Dalian iron ore futures continued to decline. The most-traded I2505 contract closed at 751.5 yuan/mt, down 2.21% for the day. Today's trading sentiment was average. Transaction prices fell by 10-15 yuan/mt compared to last Friday. This week, shipments from Australia to China declined significantly, while Brazil's share of shipments to China increased sharply. Overall, the supply of imported ore decreased, easing supply pressure. Considering the current pre-holiday restocking concentration and the rebound in pig iron production, ore prices received some support. The downward space for iron ore is expected to be relatively small...

》View SMM Steel Product Prices, Data, and Market Analysis

》Subscribe to Access Historical SMM Metal Spot Prices

Today, Dalian iron ore futures continued to decline. The most-traded I2505 contract closed at 751.5 yuan/mt, down 2.21% for the day. Traders showed weak willingness to sell. Steel mills were cautious in purchasing, opting to purchase as needed. Today's trading sentiment was average. In Shandong, the mainstream transaction prices for PB fines were around 753-755 yuan/mt, down 10-15 yuan/mt from last Friday; in Tangshan, PB fines were traded at 770 yuan/mt, down 10 yuan/mt from last Friday. This week, SMM's global iron ore shipments totaled 32.08 million mt, down 7.7% WoW. Among them, shipments from Australia reached 18 million mt, down 7.7% WoW; shipments from Australia to China were 12.88 million mt, accounting for 71.6% of Australia's total shipments, down 16.8% WoW. Shipments from Brazil were 7.62 million mt, down 5.2% WoW. This week, shipments from Australia to China saw a significant decline, while Brazil's share of shipments to China increased substantially. Overall, the supply of imported ore decreased, easing supply pressure. Considering the current pre-holiday restocking activities and the rebound in pig iron production, ore prices received some support. The downward space for iron ore is expected to be relatively small.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

20 hours ago

Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].

This week, ferrous metals were in the doldrums, with coking coal and coke staging a mid-week rise. At the beginning of the week, financial markets experienced sharp fluctuations, dragging down sentiment in the ferrous chain and leading to a pullback in futures. Mid-week, Indonesia's cut to coke production quotas drove coking coal and coke futures to lead the gains, though the impact was more pronounced on thermal coal, while coking coal's rise was largely sentiment-driven and short-lived. In the latter part of the week, finished products continued their seasonal inventory buildup, and support from the raw material side weakened, causing the entire ferrous chain to pull back. In the spot market, with the Chinese New Year holiday approaching, purchasing activity slowed down further, with end-users only making limited, as-needed purchases at low prices.

20 hours ago

MMi Daily Iron Ore Report (February 6)

Today, the DCE iron ore futures continued to hit bottom today, with the most-traded contract I2605 closing at 760.5 yuan/mt, down 1.23% from the previous trading day. Spot prices fell by 5–10 yuan/mt compared to the previous trading day.

20 hours ago

[SMM Chromium Daily Review] Inquiries and Transactions Weakened, Chromium Market Showed Mediocre Performance Before the Holiday

[SMM Chrome Daily Review: Trading and Inquiries Weakened, Chrome Market Showed Mediocre Performance Before the Holiday] February 6, 2026: Today, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content), flat MoM from the previous trading day...

20 hours ago