Improved sentiment drives iron ore prices to rebound slightly [SMM Commentary]

Today, the DCE iron ore futures continued to hold up well. The most-traded contract I2509 eventually closed at 707.5, with a daily increase of 0.86%. Traders showed moderate enthusiasm for selling, while steel mills adopted a cautious wait-and-see attitude, with their purchase willingness weakening slightly as the weekend approached. The market transaction atmosphere was average. In the Shandong region, the mainstream transaction prices of PB fines were in the range of 729-734 yuan/mt, rising slightly by 5 yuan/mt from yesterday's prices. In the Tangshan region, the transaction prices of PB fines were around 745-750 yuan/mt, rising slightly by 3-5 yuan/mt from yesterday's prices.

Last night, the heads of state of China and the United States had a phone call, during which it was agreed that tariffs would remain unchanged, and the attitudes of both countries were relatively conciliatory, boosting market sentiment. On the fundamental side, the SMM 35-port inventory continued to destock. The fundamental contradictions of iron ore itself were relatively small. It is expected that the ore prices will continue to hold up well next week, with opportunities for a slight rebound.

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