Port inventory accumulates slightly, iron ore jumps initially and then pulls back during the day [SMM Commentary]

Today, the DCE Iron Ore futures market saw a jump initially and then a pullback, operating in the doldrums throughout the day. The most-traded contract I2509 eventually closed at 703, with a daily decline of 0.14%. Traders' willingness to sell was moderate, and there was a temporary absence of speculative transactions. Steel mills adopted a cautious wait-and-see attitude, with their purchase willingness weakening. The overall market transaction atmosphere was average. In the Shandong region, the mainstream transaction prices of PB fines were around 720-722 yuan/mt, basically stable compared to yesterday's prices. In the Tangshan region, the transaction prices of PB fines were around 735-740 yuan/mt, also basically stable compared to yesterday's prices. As of June 13, SMM data showed that the total inventory at 35 ports was 137.22 million mt, an increase of 1.13 million mt from the previous week. The daily average port pick-up volume of imported ore was 2.909 million mt, a decrease of 107,000 mt compared to the previous week. Port arrivals increased MoM this week. However, the daily average pig iron production decreased, leading to a weakened demand for iron ore concentrates and a downward trend in port cargo pick-up. Looking ahead to next week, the off-season effect will become more pronounced, and steel consumption will further weaken. However, the current decline in pig iron production is relatively small, and the overall demand for iron ore remains high, providing strong support for ore prices. In the short term, the market is expected to continue fluctuating rangebound.

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