SMM's daily average pig iron production fell by 10,000 tons, with iron ore struggling to rebound [SMM Brief Comment]

Today, DCE iron ore futures continued to hold up well, with the most-traded contract I2509 closing at 728.5, up 0.76% for the day. Traders sold their cargoes in line with market conditions, while steel mills adopted a wait-and-see attitude, with their purchase willingness weakening somewhat. The market trading atmosphere was average. In the Shandong region, the mainstream transaction prices of PB fines were around 765 yuan/mt, basically flat compared to yesterday's prices. In the Tangshan region, the transaction prices of PB fines were around 775 yuan/mt, also basically flat compared to yesterday's prices. Today, the market heard that Guinea had designated several mining rights as strategic reserve areas, including iron ore projects. Coupled with the prolonged maintenance period due to the collapse of port equipment in Peru earlier, the market was concerned about a reduction in iron ore supply, supporting a slight rise in ore prices. However, SMM's daily average pig iron production fell by around 10,000 mt today, and there are still expectations of a further decline next week. The overall demand for iron ore continues to weaken, putting downward pressure on ore prices. It is expected that ore prices will fluctuate rangebound in the short term. Keep an eye on tomorrow's industrial data.

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