Market rumors affect market sentiment, iron ore prices plunge in the afternoon [SMM Brief Comment]

DCE iron ore futures fluctuated rangebound in the morning session. Affected by news, prices saw a significant pullback in the afternoon, with the most-traded contract I2605 finally closing at 757, down 1.3% from the previous trading day. Traders' willingness to sell was moderate; steel mills purchased cautiously. The market transaction atmosphere was moderate. In Shandong, PB fines transaction prices were at 775-780 yuan, down 5-8 yuan/mt from yesterday's prices; in Hebei, PB fines transaction prices were at 790-795 yuan/mt, up 5 yuan/mt from yesterday's prices.

Today's market news was relatively complex. The US Fed cut interest rates by 25 basis points as expected, and overall market sentiment remained stable. However, several bearish rumors emerged during the session: first, it was rumored that Zk would strengthen control over the storage period for some overseas mines and iron ore traders and might impose additional storage fees; simultaneously, market news suggested that an steel export licensing system might be announced tomorrow. Affected by the related rumors, market bearish sentiment intensified, dragging down iron ore prices rapidly. Additionally, the Central Economic Work Conference is expected to conclude soon, and close attention should be paid to the impact of policy signals released by the conference on subsequent futures.