Market Sentiment Remains Weak, Iron Ore Prices Continue to Decline [SMM Brief Review]

Iron ore futures prices remained in the doldrums today, with the most-traded contract I2601 settling at 775.5 yuan, down 1.71% from the previous trading day. Mainstream spot prices at ports fell by 2-8 yuan/mt compared to the previous trading day. In Shandong, transaction prices for PB fines were in the range of 780-785 yuan/mt, down 2-5 yuan/mt from the previous day; in Hebei, transaction prices for PB fines were between 786-792 yuan/mt, down 6-7 yuan/mt from the previous trading day. Trading activity in the spot market was moderate, with traders showing limited enthusiasm in offering prices; steel mills purchased as needed and remained cautious in procurement. This week, blast furnaces in Hebei gradually resumed production, with the impact from maintenance decreasing by 72,600 mt WoW. However, short-term sintering production restrictions continued to somewhat suppress iron ore demand. Overall, short-term demand for iron ore is expected to stabilize but with weak support. On the news front, the third round of coke price increases was implemented, squeezing steel mill profits; moreover, steel consumption did not show a significant increase, and market expectations for future hot metal output reductions were strong, leading to weak sentiment. Iron ore prices are expected to maintain a fluctuating trend with a weak bias in the near term.