Iron Ore Inventory Drops Significantly, Supporting Ore Prices to Strengthen from Weakness [SMM Commentary]

Published: Mar 7, 2025 17:19

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Today, Dalian iron ore futures fluctuated repeatedly, with the most-traded I2505 contract finally closing at 774, up 0.19% for the day. Traders' enthusiasm for selling remained weak; steel mills conducted limited restocking for immediate needs; the market transaction atmosphere was sluggish. Transaction prices remained stable compared to yesterday. According to SMM port inventory data, port arrivals slightly declined this week, but ore prices fell, boosting steel mills' restocking enthusiasm, which drove port pick-up volume to continue rising and led to a significant drop in port inventory, providing some support for ore prices. Looking ahead to next week, pig iron production is expected to shift from a decline to an increase, potentially further boosting iron ore demand, and iron ore prices may bottom out.

Today, Dalian iron ore futures fluctuated repeatedly, with the most-traded I2505 contract finally closing at 774 yuan/mt, up 0.19% for the day. Traders remained less motivated to sell; steel mills conducted limited restocking for rigid demand; and the market transaction atmosphere was sluggish. In Shandong, mainstream transaction prices for PB fines were around 773-777 yuan/mt, basically stable compared to yesterday; in Tangshan, PB fines transaction prices were around 780-785 yuan/mt, also stable compared to yesterday. According to SMM port inventory data, port arrivals slightly declined this week, but lower ore prices boosted steel mills' restocking enthusiasm, driving port pick-up volume to continue rising and leading to a significant drop in port inventory, which supported ore prices. Looking ahead to next week, pig iron production is expected to shift from a decline to an increase, further boosting iron ore demand, and iron ore prices may bottom out.

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