Iron Ore Fundamentals Remain Weak, Iron Ore Prices Continue to Move Sideways [SMM Brief Review]

Today, the most-traded iron ore futures contract continued to hold up well, with the most-traded contract I2605 closing at 780 yuan, up 0.52% from the previous trading day. Traders sold goods following market trends, while steel mills purchased as needed. The market transaction atmosphere was average. In Shandong, the transaction price of PB fines was 790-795 yuan, basically stable compared to yesterday's price; in Hebei, the transaction price of PB fines was 805-812 yuan/mt, also basically stable compared to yesterday's price. Due to recent maintenance at steel mills in north China, hot metal production declined, and iron ore port pick-up volume dropped significantly, leading to continued inventory buildup at ports. The supply pressure on iron ore remains high. However, considering the approaching year-end and optimistic macro sentiment, which provides bottom support for ore prices, iron ore faces difficulties moving both up and down in the short term. It is expected that iron ore may maintain a sideways movement next week.