Pre-Holiday Stockpiling Supports Iron Ore Prices, Still Room for Upside [SMM Brief Review]

 Today, iron ore futures were in the doldrums. The most-traded contract I2605 closed at 814.5 yuan/mt, down 0.73% from the previous trading day. Spot prices were basically flat compared to the previous trading day. Traders showed moderate enthusiasm in offering prices, mostly following the market trend; steel mills' purchases were mainly for rigid demand, and overall market trading sentiment was moderate. According to SMM statistics, the total iron ore inventory at 35 ports nationwide reached 147.03 million mt this week, up 1.77 million mt WoW. Meanwhile, the average daily port pick-up volume this week was 2.475 million mt, up 23,000 mt WoW. Although the simultaneous rebound in port pick-up volume indicates resilience on the demand side, the loose supply situation limits the upside room for prices. Looking ahead, as next week officially enters the critical pre-Chinese New Year restocking window, steel mills' restocking expectations are expected to begin materializing, and the rigid demand support for iron ore remains solid. Taking all factors into consideration, iron ore prices are expected to continue fluctuating at highs in the short term.