With the rigid support from the continuous rise of pig iron prices, iron ore prices will continue to rise next week [SMM Commentary]

Today, Dalian iron ore futures continued to rebound, with the most-traded contract I2509 closing at 716.5, up 1.99% for the day. Traders were actively selling. As the weekend approached, purchase willingness of steel mills weakened, but the better sales of finished steel in the morning drove some demand growth. The market trading atmosphere was average. In the Shandong region, the mainstream transaction prices of PB fines were around 706-710 yuan/mt, rising slightly by 10 yuan/mt compared to yesterday's prices; in the Tangshan region, the transaction prices of PB fines were around 720-725 yuan/mt, up by 10-15 yuan/mt compared to yesterday's prices.
This week, the expansion of steel mill profits drove a rebound in pig iron production, and the demand for iron ore was robust, providing rigid support for ore prices. However, affected by nationwide rainfall, the demand for finished steel may weaken. It is expected that the accumulation rate of finished steel inventory will accelerate next week, which will suppress ore prices. Overall, it is expected that iron ore prices will show a trend of first strengthening and then weakening next week, with the overall price center moving slightly higher.

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