Holiday affects market sentiment, iron ore prices open lower and close lower [SMM Commentary]

Today, DCE iron ore futures opened lower and closed lower, with the most-traded contract I2509 eventually closing at 695.5, down 1.14% for the day. Traders sold goods in line with the market; steel mills adopted a wait-and-see attitude cautiously, with general purchase willingness. The market transaction atmosphere was sluggish. In Shandong, the mainstream transaction prices of PB fines were in the range of 726-730 yuan/mt, dropping slightly by 5-10 yuan/mt compared to the prices before the holiday. In Tangshan, the transaction prices of PB fines were around 740-745 yuan/mt, also dropping slightly by 5-10 yuan/mt compared to the prices before the holiday.

Last week, the total global iron ore shipments reported by SMM were 34.98 million mt, down 420,000 mt WoW. The total iron ore arrivals in China reported by SMM were 25.41 million mt, down slightly by 60,000 mt WoW. The current supply side has not yet reached its peak level, and there is still room for increase in the later stage. Due to the impact of tariff policy on market sentiment during the holiday, coupled with the "strong supply and weak demand" pattern in the iron ore fundamentals, it is expected that ore prices will remain in the doldrums in the short term.

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