Supply-Demand Weakness on Both Sides, Iron Ore Prices May Continue to Fluctuate [SMM Brief Review]

Today, the most-traded iron ore futures contract held up well, with the most-traded contract I2601 finally settling at 792 yuan/mt, up 1.41% from the previous trading day, with the gains expanding. Traders' willingness to sell was moderate; steel mills purchased as needed, and the overall market transaction atmosphere was moderate. In Shandong, the transaction price for PB fines was 794-798 yuan/mt, up 1-5 yuan/mt from yesterday; in Hebei, the mainstream transaction price for PB fines was 810-812 yuan/mt, up 1-5 yuan/mt from yesterday.
This week, port arrivals showed a slight decline, and overall port spot cargo resources were relatively tight. Demand side, according to SMM tracking, the impact from maintenance on blast furnaces increased slightly this week, and hot metal production of steel mill blast furnaces was expected to dip slightly. The short-term market was in a situation of weak supply and demand. News side, the market was relatively quiet recently, and iron ore prices were expected to remain volatile in the short term.