Sentiment has eased, and the increase in iron ore prices has narrowed [SMM Commentary]

Today, DCE iron ore futures continued to hold up well, with the most-traded contract I2509 closing at 764, up 1.8% for the day, though the gain narrowed significantly. Traders followed the market trend. As the weekend approached and steel mills remained cautious amid high prices, inquiry volumes decreased. Market trading sentiment was relatively lackluster. In the Shandong region, the mainstream transaction prices of PB fines were around 748-750 yuan/mt, up 2-3 yuan/mt from yesterday; in the Tangshan region, the transaction prices of PB fines were around 763-765 yuan/mt, also up 2-3 yuan/mt from yesterday.

As of July 11, SMM data showed that the total inventory of iron ore at 35 ports nationwide was 136.16 million mt, a decrease of 970,000 mt WoW. The daily average port pick-up volume of imported ore was 2.992 million mt, a decrease of 23,000 mt WoW. Ports continued destocking, and the resilient demand for iron ore provided support for ore prices. Considering the rapid increase in ore prices this week, there was a certain degree of fear of heights in the market; however, with strong fundamental support, a downward trend was unlikely. It is expected that ore prices will mainly fluctuate at highs next week.

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