Pig iron production may stabilize this week after halting decline, while iron ore prices remain volatile [SMM Brief Comment]

Today, DCE iron ore futures pulled back from highs, with the most-traded contract I2509 closing at 699, down 0.07% for the day. Traders sold goods in line with market conditions; steel mills adopted a wait-and-see attitude and purchased as needed. The market transaction atmosphere was average. The mainstream transaction prices of PB fines in Shandong were around 715 yuan/mt, down 5 yuan/mt from yesterday's prices; the transaction prices of PB fines in Tangshan were around 730 yuan/mt, down 5 yuan/mt from yesterday's prices. According to SMM's weekly data on the impact of blast furnace maintenance, the impact of blast furnace maintenance on pig iron production this week was 1.1184 million mt, a decrease of 14,500 mt WoW. Pig iron production this week may stop falling and stabilize. In the short term, this provides some support for ore prices. However, we should also be vigilant about the expected increase in negative feedback triggered by high production during the off-season. In the short term, it is difficult to change the stalemate in ore prices, which are expected to fluctuate rangebound.

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