Port inventory sees slight buildup, iron ore prices under pressure with minor decline [SMM Brief Comment]

Today, the most-traded iron ore futures contract held up well during the day, with the most-traded contract I2601 closing at 799.5, down 0.06% from the previous trading day. Traders sold goods following market trends; some steel mills locked in profits, and procurement volume increased. Most steel mills remained cautious and adopted a wait-and-see approach, with purchase willingness being moderate. Market transaction atmosphere was moderate. In Shandong, mainstream transaction prices for PB fines were 793-795 yuan/mt, up 3-5 yuan/mt from yesterday; in Tangshan, transaction prices for PB fines were 795-800 yuan/mt, up 0-5 yuan/mt from yesterday.

As of September 12, according to SMM statistics, total iron ore inventory at 35 ports nationwide was 130.41 million mt, up 880,000 mt WoW. Meanwhile, daily average port pick-up volume for imported ore was 3.05 million mt, up 75,000 mt WoW. Although port pick-up volume increased, last week's significant growth in port arrivals led to a slight accumulation in inventory this week. In the short term, hot metal production continues to rebound, and with some steel mills starting pre-holiday stockpiling, iron ore demand continues to increase. Additionally, the US Fed is expected to cut interest rates next week, which will provide bullish support for commodities. Iron ore prices are expected to have further upside potential next week.