Maintenance News Increases, Iron Ore Prices Under Pressure [SMM Brief Review]

Dalian iron ore futures weakened significantly today, with the most-traded contract I2601 closing at 782.5 yuan, down 1.82% from the previous trading day. Main port spot prices fell by 12-14 yuan/mt compared to the previous trading day, with transaction prices for PB fines in the Shandong region at 786-788 yuan/mt, down 12-14 yuan/mt from the previous day, and in the Hebei region at 793-798 yuan/mt, down 12 yuan/mt from the previous trading day. The spot market was mediocre, with steel mills purchasing mainly for rigid demand and traders selling at appropriate prices.

This week, iron ore shipments increased slightly by 1.5%, while port arrivals rose significantly by over 13.8%. Considering the weak purchasing enthusiasm of steel mills, inventory accumulation may expand this week. Demand side, Hebei again implemented a Level-2 environmental protection alert, but this round of production restrictions mainly targeted sintering machines, with no impact on blast furnaces so far. However, due to worsening losses among steel mills in Shanxi, many have announced maintenance plans, and hot metal production is expected to decline noticeably after mid-to-late November. Today, affected by maintenance news, market sentiment weakened, leading to a larger-than-expected drop in ore prices. In the short term, without macro influences, iron ore prices may continue their weak trend.