Rebar demand has already weakened, suppressing iron ore prices to decline [SMM Brief Comment]

Today, iron ore futures moved downwards after a higher opening, with the most-traded contract I2601 closing at 795.5, down 0.81% from the previous trading day. Traders sold at market prices, while steel mills purchased as needed at lower levels. Market trading activity was moderate. In Shandong, mainstream transaction prices for PB fines were 790-793 yuan/mt, down 3-5 from yesterday; in Tangshan, transaction prices for PB fines were around 795 yuan/mt, down 5-10 yuan/mt from yesterday.

From today's industry data, apparent demand rebounded, while the inventory buildup of the five major steel products narrowed. However, rebar demand remained weak, and after the continuous rise in iron ore prices, valuations were high, prompting some bulls to take profits and exit, leading to a pullback in futures prices. Nevertheless, considering that overall iron ore demand remains at a good level and end-use demand is gradually recovering, ore prices are expected to continue fluctuating at highs in the short term.