Spot Demand Supports Slight Increase in Iron Ore Port Spot Prices [SMM Brief Review]

Today, the most-traded iron ore futures contract continued in the doldrums, with the most-traded contract I2601 finally settling at 773 yuan, down 0.9% from the previous day. Traders showed moderate willingness to sell; steel mills purchased as needed. The overall market transaction atmosphere was moderate. In Shandong, mainstream transaction prices for PB fines were around 770-774 yuan/mt, basically flat from the previous day; in Tangshan, transaction prices for new PB fines were 783-788 yuan/mt, up 0-3 yuan/mt from the previous day.

Industry data showed the apparent demand for the five major steel products released today increased significantly, while overall inventory saw a slight decline. End-use demand improved after the holiday. However, steel mill profits have contracted noticeably recently, and market expectations for negative feedback have strengthened, leading to weak market sentiment. Nevertheless, an important domestic meeting is scheduled next week, prompting cautious market operations. In the short term, expectations for a decline in hot metal production have intensified, which may keep iron ore prices in the doldrums.