Iron Ore Demand Is Expected to Grow, Supporting Prices to Hold Up Well [SMM Brief Comment]

Iron ore futures continued to hold up well today, with the most-traded contract I2601 closing at 777 yuan/mt, up 0.71% from the previous working day. Traders maintained firm offers with moderate willingness to sell, while steel mills remained cautious in procurement and inquiries. Market transactions were subdued. In Shandong, mainstream transaction prices for PB fines stood at 772-775 yuan/mt, up 2-5 yuan/mt from yesterday. In Tangshan, PB fines traded around 785 yuan/mt, up 0-5 yuan/mt.
This week, 18 blast furnaces underwent maintenance while 16 resumed production domestically, with most maintenance concentrated in Tangshan, leading to a sharp decline of 63,200 mt in hot metal output. Production is expected to gradually normalize after the military parade, with hot metal output likely to rebound significantly. Market expectations of demand recovery supported ore prices to hold up well.