Rebar Apparent Demand Growth Expands Slightly Ore Price Increases [SMM Brief Comment]

The iron ore futures market started weak but then strengthened today, holding up well throughout the day. The most-traded contract I2601 finally closed at 805.5, up 0.25% from the previous working day. Traders showed moderate enthusiasm for selling; steel mills adopted a cautious wait-and-see approach, purchasing as needed. The overall market transaction atmosphere was average. In the Shandong region, the mainstream transaction prices for old PB fines were around 795-796 yuan/mt, while new PB fines were around 785 yuan/mt, basically stable compared to yesterday's prices; in the Tangshan region, PB fines traded at 800-805 yuan/mt, up 0-5 yuan/mt from yesterday.
The apparent demand for the five major steel products continued to grow today, with the growth rate expanding further. Rebar demand has increased for two consecutive weeks, while inventory declined simultaneously. The peak season effect of end-use demand became prominent, boosting market confidence and driving a slight rise in ferrous products. Considering that short-term pre-holiday stockpiling by steel mills has been completed and the weekend is approaching, market trading activity is expected to decline, leaving limited upside room for iron ore, which is likely to continue fluctuating rangebound.