Tug-of-war between longs and shorts intensifies, iron ore price fluctuates rangebound [SMM Brief Comment]

Today, DCE iron ore futures continued to open lower and then rebounded slightly, with the most-traded contract I2509 closing at 725, up 0.28% for the day. Traders were moderately enthusiastic about selling; steel trading was active today, with steel mills quoting higher prices and procurement volumes also increasing. The market transaction atmosphere was moderate. The mainstream transaction prices of PB fines in Shandong were around 765 yuan/mt, up 0-5 yuan/mt from yesterday; in Tangshan, the transaction prices of PB fines were around 775 yuan/mt, also up 0-5 yuan/mt from yesterday. The tug-of-war between longs and shorts in the market intensified today. Both deposit and lending rates were lowered today. Moreover, the State Council held another press conference, reiterating that major projects would be implemented in June. Market sentiment improved slightly, but with no specific policies introduced, market expectations somewhat weakened. In the short term, iron ore fundamentals are supportive, and there is no significant imbalance in the industry. It is expected that ore prices will fluctuate rangebound.

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