Market Sentiment Remains Optimistic, Iron Ore Prices May Continue to Hold Up Well [SMM Brief Review]

DCE iron ore futures opened weak but strengthened later, with the most-traded contract I2601 closing at 792 yuan/mt, up 0.64% from the previous trading day. Traders sold cargoes following market trends while steel mills purchased as needed. Market transactions remained subdued. In Shandong, mainstream transaction prices for PB fines stood at 780-785 yuan/mt, up 0-3 yuan/mt WoW from last Friday. In Tangshan, PB fines traded around 790-800 yuan/mt, gaining 0-5 yuan/mt WoW.

Global iron ore shipments totaled 34.46 million mt last week, edging down 880,000 mt WoW. While shipments from Australia and non-mainstream countries rebounded slightly, Brazil's shipments pulled back. China's port arrivals surged 6.06 million mt WoW to 28.5 million mt, mainly due to delayed vessel arrivals, though absolute volumes showed no significant improvement, limiting downward pressure on ore prices. This week, with hot metal production expected to rebound notably and sustained optimism over expectations for US Fed interest rate cuts, ore prices found support and held up well, a trend likely to continue in the near term.