Upward Momentum Insufficient, Iron Ore May Maintain High and Rangebound Fluctuations [SMM Brief Review]

Today, the most-traded iron ore futures continued to hold up well, pulling back slightly towards the close. The most-traded contract I2601 ended at 794 yuan/mt, up 0.51% from the previous trading day. Traders showed moderate willingness to sell; steel mills purchased as needed, with moderate restocking interest. Overall market transaction sentiment was moderate. In Shandong, transaction prices for PB fines were 793-798 yuan/mt, up 2-3 yuan/mt from yesterday; in Hebei, transaction prices for PB fines were 800-805 yuan/mt, up 0-3 yuan/mt from the previous day.

Recently, the probability of a US Fed interest rate cut in December has increased, and optimistic market sentiment has supported ore prices to hold up well. However, iron ore's own fundamentals are expected to weaken, with insufficient upward momentum, putting short-term upward pressure under constraint. It is expected to continue moving sideways at high levels.