The market was relatively calm, with iron ore prices in the doldrums [SMM Brief Comment]

Today, the most-traded iron ore futures contract was in the doldrums, with the I2601 contract closing at 770, down 0.71% from yesterday. Traders' quotation enthusiasm was moderate; steel mills were cautious and observing, and purchase willingness was average as the weekend approached. The market transaction atmosphere was sluggish. In Shandong, mainstream transaction prices for PB fines were around 765-770 yuan/mt, down 2 yuan/mt from yesterday; in Tangshan, PB fines transaction prices were around 775-780 yuan/mt, down 2-5 yuan/mt from yesterday.

Looking ahead to next week, steel mills in north China will gradually implement environmental protection-driven production restrictions, leading to blast furnace shutdowns and a slight decline in hot metal production. However, there is still room for supply growth during the peak season, resulting in an overall pattern of strong supply and weak demand. Iron ore prices remain under pressure. Nevertheless, due to the limited scope and short duration of this round of production restrictions, the total impact on hot metal output is minimal, and market expectations are optimistic. Ore prices are unlikely to see a significant drop and may continue to be in the doldrums. Attention should be paid to the impact of weather conditions in the north on steel mill operations next week.