Port Inventory Accumulation Accelerates, Pressuring Iron Ore Prices to Continue Declining [SMM Brief Comment]

Iron ore futures continued to weaken today. The most-traded contract I2601 closed at 760.5 yuan, down 1.87% from the previous working day. Main port spot cargoes fell 5-10 yuan/mt from the previous working day, with PB fines transaction prices in Shandong region at 770-773 yuan, down 10 yuan/mt from yesterday; transaction prices for PB fines in Hebei region were 777-785 yuan/mt, down 5-10 yuan/mt from yesterday. Due to a significant increase in port arrivals recently, while steel mills' purchase willingness remains moderate and port pick-up volume stays low, port inventory accumulation has accelerated. Ore prices came under substantial downward pressure. Looking ahead to next week, coke prices are still expected to increase, steel mill losses are set to worsen further, and hot metal production is anticipated to continue declining, with iron ore itself facing strong supply and weak demand; coupled with market pessimism over end-use demand. Under these combined pressures, ore prices are projected to have further room for a slight decline.