Iron Ore Prices Edge Up, Port Spot Cargoes Trade Sluggish [SMM Brief Review]

On October 21, the closing price of the 01 contract was 769.5 yuan/mt, up 0.13% from the previous trading day. Spot cargoes at major ports showed relatively small fluctuations compared to the previous day, with transaction prices for PB fines in the Hebei region ranging between 784-789 yuan, up 2 yuan/mt from yesterday; transaction prices for PB fines in the Shandong region ranged between 772-778 yuan, up -1 to 2 yuan/mt from yesterday. Spot transactions were relatively low today, as low prices led to traders' weak willingness to sell, and trading atmosphere was moderate.

Fundamentally, steel mill profits continued to narrow, and steel mills showed strong willingness to conduct maintenance and cut production, resulting in weak support for iron ore demand. Supply side, both shipments and port arrivals increased significantly this week, and supply is expected to be relatively loose in the later period. Overall, fundamental support weakened again. In terms of news, important meetings were held intensively this week, and the market still holds expectations for favorable policies. In the short term, influenced by news factors, iron ore prices are expected to show a volatile trend.