Demand remains resilient during off-season, iron ore prices rebound slightly in the afternoon [SMM Commentary]

This morning, Dalian iron ore futures were in the doldrums, but rebounded slightly in the afternoon. The most-traded contract I2509 closed at 705.5, up 0.64% for the day. Traders sold goods according to 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 the Shandong region were around 700-702 yuan/mt, rising slightly by 0-2 yuan/mt from yesterday's prices. The transaction prices of PB fines in the Tangshan region were around 710 yuan/mt, basically stable from yesterday's prices.
Although the total inventory of the five major steel products accumulated slightly today, the performance of rebar exceeded expectations, with a slight MoM increase in apparent consumption, driving the inventory to continue its de-stocking trend. This significantly boosted market sentiment and supported ore prices to rebound slightly. Considering the off-season demand and the lack of macro policy stimulus, ore prices lack sustained upward momentum. It is expected that ore prices will maintain a rangebound fluctuation pattern in the short term.

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