As the Weekend Approaches, Market Trading Turns Sluggish, Iron Ore Prices Continue in the Doldrums [SMM Brief Commentary]

 Today, the most-traded iron ore futures contract continued to trade in the doldrums, with the most-traded contract I2601 closing at 771, down 0.19% from the previous day. Some traders halted sales, while steel mills exhibited stronger wait-and-see sentiment, resulting in limited inquiries. Market transaction activity remained sluggish. In Shandong, mainstream transaction prices for PB fines were around 770-780 yuan/mt, up slightly by 1-2 yuan/mt from the previous day; in Tangshan, transaction prices for new PB fines were 780-785 yuan/mt, retreating from highs by 2-3 yuan/mt. According to SMM port inventory data, port inventory continued to see slight destocking, as port arrivals dropped significantly while port pick-up volume increased only slightly. Short-term iron ore supply pressure is relatively small. Coupled with daily average hot metal production remaining high at 241 mt, the fundamentals of iron ore are supported. However, current market concerns about negative feedback have intensified, and market sentiment is weak. Considering that next week's important meeting is still expected to bring some favorable policies, ore prices have a chance to stabilize and rebound next week.