Market Sentiment Weakens Iron Ore Prices Turn Soft [SMM Brief Comment]

Published: Aug 26, 2025 17:16

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Today, the most-traded iron ore futures contract I2601 was in the doldrums, closing at 776.5, down 0.7% from yesterday's price. Traders sold goods according to market conditions; steel mills purchased as needed, with moderate inquiries. The overall trading atmosphere in the market was average. In Shandong, the mainstream transaction prices for PB fines were 770-772 yuan/mt, up 8-10 yuan/mt from yesterday; in Tangshan, the transaction prices for PB fines were around 775-780 yuan/mt, down 10-15 yuan/mt from yesterday.

The impact of yesterday's supply-side incident on market sentiment has gradually weakened, and the price logic has returned to the fundamentals. According to SMM survey data, this week, the impact from maintenance on blast furnaces was 1.1328 million mt, up 6,100 mt WoW. The reduction in hot metal was relatively limited. However, it is expected that next week, the impact from maintenance will further increase by 221,100 mt, leading to a significant decline in hot metal production. Coupled with the upcoming implementation of production restrictions, steel mills have a weak outlook for future demand, low purchase willingness, and strong pressure on ore prices. It is expected that prices will continue to be in the doldrums in the short term.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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