Inventory Increased by 1.21 Million mt Again, Iron Ore Prices in the Doldrums [SMM Brief Comment]

Today, iron ore futures traded in the doldrums. The most-traded contract rolled over to I2605 and finally closed at 769, down 0.77% from the previous trading day. Traders' willingness to sell was moderate. As the weekend approached, steel mills' purchasing enthusiasm declined. The market transaction atmosphere was sluggish. In Shandong, the transaction price for PB fines was 780-787 yuan/mt, down 5-10 yuan/mt from yesterday. In Hebei, the transaction price for PB fines was 790-800 yuan/mt, down 5-10 yuan/mt from yesterday.

As of December 5, according to SMM statistics, the total iron ore inventory across 35 ports nationwide was 139.82 million mt, an increase of 1.21 million mt WoW. The average daily port pick-up volume this week was 2.686 million mt, down 69,000 mt WoW. Recently, annual maintenance at steel mill blast furnaces entered a concentrated period, leading to a significant decline in iron ore demand, which dragged prices down under pressure. Considering that an important meeting will be held next week, market sentiment is positive, and the downside room is expected to be limited.