Iron Ore Prices Remain Stable on First Day After Holiday [SMM Brief Comment]

On the first day after the holiday, iron ore futures prices fluctuated repeatedly, with the most-traded contract I2509 eventually closing at 704.5, unchanged from the level before the holiday. Traders sold goods according to market conditions, with limited speculative transactions; steel mills purchased as needed. The market transaction atmosphere was average. The mainstream transaction prices of PB fines in the Shandong region were around 755-760 yuan/mt, unchanged from the prices before the holiday. The transaction prices of PB fines in the Tangshan region were around 765-775 yuan/mt, also unchanged from the prices before the holiday. The total SMM global iron ore shipments were 32.368 million mt, down 1.835 million mt WoW, a decrease of 5.4%. Among them, shipments from Australia and Brazil, as well as non-mainstream mines, all declined slightly WoW. The total SMM iron ore arrivals in China were 25.31 million mt, with a WoW decline of 9.82% and a YoY decline of 9.52%. Supply pressure has eased somewhat. Coupled with the current high level of pig iron production and the restocking demand of steel mills after the holiday, the fundamental aspects of iron ore itself support ore prices. Considering the suppression of ore prices due to the marginal weakening of end-use demand and the delayed implementation of the crude steel production reduction policy, it is expected that ore prices will face upward and downward pressures this week, mainly operating within a sideways movement range.

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