Rebar apparent demand declined significantly, and iron ore prices weakened in the afternoon [SMM Commentary]

Today, DCE iron ore futures struggled to rise and traded in the doldrums in the afternoon. The most-traded contract I2509 eventually closed at 704, down 0.21% for the day. Traders sold goods according to market conditions, while steel mills purchased as needed. The market trading atmosphere was average. The mainstream transaction prices of PB fines in Shandong were around 720-722 yuan/mt, down 2-5 yuan/mt from yesterday's prices. The transaction prices of PB fines in Tangshan were around 735-740 yuan/mt, dropping slightly from yesterday's prices.

Today, the inventory and apparent demand data for the five major steel products declined simultaneously. Among them, the apparent demand for rebar declined significantly due to the impact of the senior high school entrance examination, the college entrance examination, and the plum rain season in south China. Considering the good profits of steel mills and the high pig iron production, although iron ore lacks upward momentum, it is also difficult for it to experience a significant decline. It is expected that iron ore will continue to fluctuate rangebound in the short term.

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