Iron ore prices have reached a high level, and market sentiment for a bullish outlook has cooled slightly [SMM Commentary]

Today, iron ore futures continued their strong upward trend, with the most-traded contract I2509 surging to 835.5 in the afternoon before pulling back to close at 823, marking a daily gain of 2.49%. Traders actively offloaded positions, while speculative trading remained weak. Some steel mills purchased as needed, but most adopted a cautious wait-and-see approach with weak purchase willingness. Market transaction sentiment was moderate. In Shandong, mainstream transaction prices for PB fines hovered around 798 yuan/mt, up 13 yuan/mt from the previous day, while in Tangshan, PB fines traded near 815 yuan/mt, a 15 yuan/mt increase. Anti-"rat race" policies coupled with mega-project stimulus fueled sentiment in the ferrous metals series, driving futures sharply higher. Iron ore prices have reached elevated levels, amplifying market jitters over the rally. Given intensifying policy uncertainties and limited fundamental demand support, near-term upside appears constrained, warranting cautious positioning.