Increased Impact from Blast Furnace Maintenance Suppresses Iron Ore Prices [SMM Brief Review]

Today, iron ore futures surged before pulling back slightly. The most-traded contract I2601 hit a high of 804.5 and finally closed at 800.5, up 0.5% from the previous working day. Traders sold at market prices; steel mills were bearish on future ore prices, with purchase willingness remaining average. Market transaction activity was moderate. In Shandong, PB fines traded at 796-800 yuan, flat from yesterday's price; in Hebei, PB fines traded at 803-813 yuan/mt, basically flat from yesterday.

According to SMM statistics, this week (November 29 to December 5), the impact from maintenance on hot metal production was 1.5412 million mt, up 89,900 mt WoW. Next week (December 6 to December 12), the impact from maintenance on hot metal production is expected to be 1.6224 million mt, up 81,200 mt WoW from this week. Hot metal production is on a downward trend, with the weakening fundamentals putting pressure on ore prices. However, with an important domestic conference approaching, the market still holds some expectations. Market sentiment was positive, and ore prices remained relatively firm.