Price fluctuations are frequent as the conference approaches; iron ore prices follow the upward trend of finished steel [SMM Comment]

Today, Dalian iron ore futures opened low and closed high. The most-traded contract I2509 saw a reduction in positions and an upward trend, ultimately closing at 798, with a daily increase of 0.63%. Traders were active in selling, while steel mills purchased as needed. Some steel mills with better sales of finished products showed stronger purchasing enthusiasm. The market transaction atmosphere was moderate. In the Shandong region, the mainstream transaction price of PB fines was around 780 yuan/mt, a decrease of 5-10 yuan/mt from yesterday's price. In the Tangshan region, the transaction price of PB fines was around 795 yuan/mt, also a decrease of 5-10 yuan/mt from yesterday's price. Currently, the fundamental situation of iron ore has not changed significantly. The futures market's rise was mainly driven by market news and followed the upward trend of finished products. In the short term, as the Political Bureau meeting approaches, market volatility may intensify. However, iron ore has strong resilience, and it is expected that both upside and downside room will be limited.