Market sentiment remains weak, iron ore prices remain stable [SMM Brief Review]

Today, the iron ore futures held up well throughout the day, with a brief pullback in the afternoon followed by a slight rebound. The most-traded contract I2509 closed at 711, up 0.21% for the day. Traders sold goods according to market conditions, while steel mills showed stronger purchase willingness, mainly purchasing as needed. The market transaction atmosphere was moderate. In Shandong, the mainstream transaction prices for PB fines were around 765-770 yuan/mt, down 0-5 yuan/mt from yesterday. In Tangshan, the transaction prices for PB fines were around 770-778 yuan/mt, down 2-5 yuan/mt from yesterday.

According to SMM statistics, the impact from blast furnace maintenance on pig iron production dropped to 969,000 mt this week, down 191,300 mt WoW. Next week, the impact from blast furnace maintenance is expected to decrease by 36,800 mt WoW. This indicates that the current round of pig iron growth is nearing its end, with limited room for further increases. Although the Sino-US tariff policy continues to disturb market sentiment, as the month-end Politburo meeting approaches, expectations for macro policy support have provided a boost to ore prices. Overall, with the resilience of fundamentals and the anticipation of favorable policies, iron ore prices are expected to maintain a strong performance in the short term.

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