Conference Expected to Decline, Iron Ore Prices Continue in the Doldrums [SMM Brief Review]

Today, iron ore futures continued in the doldrums, with the most-traded contract I2601 closing at 767, down 0.58% from yesterday's price. Traders showed low willingness to sell; steel mills' wait-and-see sentiment intensified, with few inquiries. Market transaction atmosphere was sluggish. In Shandong, mainstream transaction prices for PB fines were around 775-778 yuan/mt, down slightly by 1-5 yuan/mt from yesterday; in Tangshan, transaction prices for new PB fines were 780-785 yuan/mt, down 1-5 yuan/mt from yesterday.

 Fundamentally, narrowing steel mill profits coupled with expectations of stricter environmental protection-driven production restrictions in some regions have increased steel mills' willingness to conduct maintenance, weakening support for iron ore demand. In terms of supply, both shipments and port arrivals increased significantly this week, and supply is expected to remain relatively ample in the short term. In the near term, as fundamental support weakens, ore prices are expected to show a fluctuating trend.