Data on the Five Major Materials Showed Moderate Performance, Iron Ore Prices Rebounded Slightly in the Afternoon [SMM Brief Comment]

Today, the iron ore futures continued to hit new lows in the morning and rebounded somewhat in the afternoon. The most-traded I2505 contract closed at 762, with a full-day decline of 0.46%. Traders sold goods according to market conditions; steel mills were cautious and observed, with moderate purchase willingness; the overall trading atmosphere was average. In Shandong, the mainstream transaction prices for PB fines were around 760-765 yuan/mt, basically stable compared to yesterday's prices; in Tangshan, the transaction prices for PB fines were around 770-772 yuan/mt, also basically stable compared to yesterday. This week, the steel industry data was released, showing that the apparent demand for the five major steel products continued to grow. Inventory levels continued to decline. Particularly, the apparent demand for rebar continued to increase, and the destocking rate was moderate, providing some support to the futures market. However, there are concerns about negative feedback in the market, and it is expected that ore prices will have difficulty strengthening in the short term.