Apparent Demand for Five Major Steel Products Rebounds, Iron Ore Prices Slightly Strengthen [SMM Brief Comment]

Today, the iron ore futures showed a slight strengthening, with the most-traded contract I2601 closing at 772.5, up 0.98% from yesterday. Traders sold according to market conditions; steel mills were cautious and observed, with an increased willingness to purchase high-grade ore. The market transaction atmosphere was moderate. In Shandong, the mainstream transaction prices for PB fines were around 770 yuan/mt, up 2-4 yuan/mt from yesterday; in Tangshan, the transaction prices for PB fines were around 780-785 yuan/mt, up 2-5 yuan/mt from yesterday.

There were no further updates on environmental protection-driven production restrictions in north China, and market sentiment improved after a brief release. Today's industry data showed a rapid accumulation of rebar inventory, but there was a slight improvement in the overall apparent consumption of the five major types of steel. The current supply-demand imbalance in the steel market is not prominent. Additionally, steel mill profits remain good, and the market maintains an optimistic outlook on overall hot metal production. It will be important to closely monitor the potential impact of weather in north China on steel mill production. If blast furnace production cuts expand further, iron ore prices may continue to be in the doldrums.