Market Sentiment Cautious, Iron Ore Price Gains Narrow [SMM Brief Comment]

Today, DCE iron ore futures fluctuated rangebound, weakening slightly in the afternoon. The most-traded contract I2509 eventually closed at 736.5, up 1.17% for the day. Traders sold goods in line with market conditions. Some steel mills experienced poor sales of finished products, leading to weakened purchase willingness. The market trading atmosphere was average. The mainstream transaction prices of PB fines in Shandong region were around 775 yuan/mt, maintaining stability compared to yesterday's prices. The transaction prices of PB fines in Tangshan region were around 785-790 yuan/mt, also maintaining stability compared to yesterday's prices.

Today's industrial data showed a significant improvement MoM, with a substantial rebound in the apparent demand for the five major steel products. Both in-plant inventory and social inventory declined simultaneously. The industrial supply and demand situation is healthy. However, macro sentiment has been fully released, and market sentiment is relatively cautious, with spot and futures prices holding steady. Considering the healthy fundamentals of iron ore itself, high pig iron production, and relatively small overseas supply pressure, it is expected to continue to hold up well in the short term.

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