Supply Pressure Continues to Increase, Iron Ore Maintains Weak and Rangebound Fluctuations [SMM Brief Review]

DCE iron ore futures were in the doldrums in the morning and rebounded slightly in the afternoon. The most-traded contract I2601 closed at 765 yuan, down 0.07% from the previous working day. Main port spot prices rose 0-5 yuan/mt from the previous working day, with PB fines transaction prices in Shandong at 766-775 yuan/mt, up 2-5 yuan/mt from last Friday; PB fines transaction prices in Hebei were 779-785 yuan/mt, up 0-5 yuan/mt from last Friday. Last week, SMM global iron ore shipments totaled 33.49 million mt, down about 3.9% WoW. SMM China iron ore arrivals totaled 30.36 million mt, up 1.6% WoW. Iron ore supply continued to increase; however, demand remained weak. But according to SMM survey results, blast furnace maintenance was mostly concentrated in late November and December, and hot metal production was expected to maintain high levels with narrow fluctuations this week, supporting spot iron ore prices. In the short term, iron ore prices may have limited downside room and mainly fluctuate rangebound in the doldrums.