Market Sentiment Remains Weak, Iron Ore Prices Continue in the Doldrums [SMM Brief Commentary]

Iron ore futures continued to trade in the doldrums today. The most-traded contract I2601 closed at 780.5, down 0.64% from the previous trading day. Some traders were already on holiday, showing a general willingness to sell; steel mills mostly adopted a cautious wait-and-see approach, with some purchasing as needed. Market transaction sentiment was sluggish. In Shandong, mainstream transaction prices for old PB fines were around 775-776 yuan/mt, down 3-5 yuan/mt from yesterday; transaction prices for PB fines in Tangshan were 785-790 yuan/mt, basically stable compared to yesterday.

According to SMM data, hot metal production affected by blast furnace maintenance this week was 1.0223 million mt, down slightly by 31,000 mt WoW. Hot metal production is expected to have room for a rebound this week, with the overall fundamental structure remaining solid, providing some support for ore prices. However, as pre-holiday restocking by steel mills has largely concluded, coupled with rising market risk aversion, open interest in iron ore declined, and market sentiment remained weak. Trading was sluggish during the holiday, and spot prices are expected to remain stable.