Off-season apparent demand continues to decline, with insufficient upward drivers for iron ore [SMM Commentary]

Today, DCE iron ore futures opened higher and moved downwards after a higher opening, fluctuating rangebound throughout the day. The most-traded contract I2509 eventually closed at 701, with a daily decline of 0.14%. Traders sold goods according to market conditions; steel mills adopted a wait-and-see attitude cautiously, and their purchase willingness declined compared to yesterday. The market transaction atmosphere was average. The mainstream transaction prices of PB fines in Shandong region ranged from 728-732 yuan/mt, dropping slightly by 5 yuan/mt compared to yesterday's prices; the transaction prices of PB fines in Tangshan region were around 742-745 yuan/mt, dropping slightly by 3-5 yuan/mt compared to yesterday's prices. After the market sentiment triggered by coking coal was released, the market returned to fundamental logic. Today, the apparent demand for the five major steel products continued to decline, in line with seasonal trends. However, the total inventory remained in a state of destocking, providing support for the entire ferrous metals sector. But weak demand during the off-season suppressed volumes, and the upward driving force for iron ore prices was insufficient. In the short term, the market will continue to exhibit a weak and rangebound fluctuation pattern.

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