Industry data highlights off-season weakness, with iron ore prices following suit [SMM Commentary]

Today, DCE iron ore futures fluctuated rangebound, with the most-traded contract I2509 closing at 779, down 2.38% for the day. Traders showed moderate enthusiasm in quoting prices; steel mills purchased as needed. The market transaction atmosphere was average. In the Shandong region, the mainstream transaction prices of PB fines were around 765 yuan/mt, down 10 yuan/mt from yesterday's price; in the Tangshan region, the transaction prices of PB fines were around 780 yuan/mt, down 5-10 yuan/mt from yesterday's price.

Today, the apparent demand for the five major steel products declined significantly, and the inventory accumulation rate accelerated, highlighting the off-season effect. However, the current high profits of steel mills have maintained stable hot metal production, and the demand for iron ore remains resilient, with industrial contradictions still needing to accumulate. The content of yesterday's Political Bureau meeting fell short of market expectations, leading to a weakening of market sentiment. Iron ore prices followed the ferrous metals series downward, and may maintain a weak and rangebound pattern in the short term.