The supply-demand imbalance in iron ore is relatively small, and ore prices are supported. [SMM Commentary]

Today, DCE iron ore futures held up well, with the most-traded contract I2509 closing at 704.5, up 0.21% for the day. Traders were moderately active in selling, while steel mills adopted a cautious wait-and-see attitude, with some conducting tenders. The market trading atmosphere was average. In the Shandong region, the mainstream transaction prices of PB fines were around 720-722 yuan/mt, holding steady compared to last Friday. In the Tangshan region, the transaction prices of PB fines were around 735-738 yuan/mt, also holding steady compared to last Friday.

SMM's weekly shipping data showed that global iron ore shipments declined by 4% WoW last week, with decreases in the total shipments from Australia and Brazil as well as non-mainstream suppliers, while India's shipments increased slightly. Port arrivals also fell by 4.76% synchronously. Shipments in June have been hovering at a moderate level, and the overall increase in supply may fall short of expectations, with relatively small short-term supply pressure and a minor supply-demand imbalance, providing support for ore prices.

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