Tariff news affects sentiment, causing it to weaken; iron ore prices are in the doldrums [SMM Commentary]

Today, Dalian iron ore futures pulled back from highs and traded in the doldrums throughout the day. The most-traded contract I2509 closed at 731, down 0.68% for the day. Traders sold their goods according to market conditions. Steel mills adopted a wait-and-see approach, with weak purchase willingness. The market transaction atmosphere was average. The mainstream transaction prices of PB fines in the Shandong region were around 720-723 yuan/mt, pulling back 2 yuan/mt from the highs of last Friday. The transaction prices of PB fines in the Tangshan region were around 730-735 yuan/mt, down 2-5 yuan/mt from last Friday's prices.

SMM shipping data shows that after the push for target at quarter-end by mines, shipments have declined significantly, alleviating short-term supply pressure. However, market sentiment has been disrupted by the impending end of the tariff exemption period, causing futures prices to come under slight pressure and decline. Currently, the iron ore market is characterized by weak supply and demand, with ore price fluctuations primarily driven by policy expectations. In the short term, close attention should be paid to tariff policy developments and the impact of the important July meeting on the market.

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