Hot Metal Production Declined Again, Iron Ore Prices Continued to Be in the Doldrums [SMM Brief Review]

Today, iron ore futures were in the doldrums. The most-traded contract I2605 closed at 784 yuan/mt, down 0.32% from the previous trading day. Spot prices dropped slightly by about 1-2 yuan/mt compared to the previous trading day. Traders' quoting enthusiasm was mediocre, mostly following the market trend. Steel mills' procurement focused on restocking as needed, with cautious inquiries. The overall market trading atmosphere was mediocre.

On the fundamental data side, the latest SMM survey showed that the capacity utilization rate of blast furnaces at 242 sample steel mills was 86.97%, with daily average hot metal production reaching 2.3562 million mt, down 2,100 mt WoW. Overall, rigid demand for iron ore remained basically stable.
 
This week, pre-holiday restocking demand from steel mills was concentratedly released, which is expected to support iron ore demand. However, given that port inventory remains high and the loose supply situation persists, the fundamental trend of iron ore continues to face resistance above and support below. In the short term, iron ore prices are expected to remain in the doldrums.