Environmental Protection-Driven Production Restrictions Suppress Hot Metal Output, Iron Ore Prices Fluctuate Rangebound [SMM Brief Review]

Today, iron ore futures held up well, with the most-traded contract I2605 closing at 761, up 1.06% from the previous trading day. Traders sold at market prices; steel mills purchased as needed, with moderate inquiry volume. Market transaction sentiment was average. In Shandong, PB fines traded at 775-781 yuan, up 3-5 yuan/mt from yesterday; in Hebei, PB fines traded at 790-800 yuan/mt, up 3-5 yuan/mt from yesterday.

According to SMM statistics, this week (December 13 to December 19), the impact from blast furnace maintenance on hot metal reached 1.8735 million mt, up 134,600 mt WoW. Due to environmental protection-driven production restrictions in Hebei, blast furnace operations faced constraints, leading to an overall decline in iron ore demand. The fundamentals remain bearish, and iron ore prices are expected to fluctuate rangebound in the short term.