Market sentiment is weak, and iron ore prices follow the decline [SMM Comment]

Today, DCE iron ore futures dropped slightly, with the most-traded contract I2509 closing at 786, down 1.75% for the day. Traders' willingness to sell was weak. Steel mills adopted a cautious wait-and-see attitude, with some purchasing as needed. The market transaction sentiment was average. In the Shandong region, the mainstream transaction prices of PB fines were around 770-775 yuan/mt, down 10-15 yuan/mt from Friday last week. In the Tangshan region, the transaction prices of PB fines were around 785-790 yuan/mt, also down 10-15 yuan/mt from Friday last week.

SMM shipping data showed a slight decrease in global shipments, with shipments from Australia rebounding slightly, while shipments from Brazil declined significantly. Additionally, shipments from Peru and Iran in non-mainstream regions resumed. However, influenced by the recent sharp drop in carbon element prices, sentiment in the ferrous sector was weak, and iron ore prices followed suit. In the short term, the robust demand for hot metal production provides support for ore prices. Attention should be paid to the impact of important meeting contents on prices in the near future.