Iron Ore Prices Rebound Slightly, Market Transactions Sluggish [SMM Brief Review]

DCE iron ore fluctuated upward today, with the most-traded contract I2605 settling at 798.5 yuan/mt, up 1.78% from the previous session. Spot prices rose 5-10 yuan. Traders showed moderate enthusiasm in offering, while steel mills purchased as needed and inquired cautiously, resulting in a quiet overall trading atmosphere.
According to the latest SMM data, total iron ore inventories at the 10 major ports reached 118.07 million mt, up 1.94 million mt MoM. By inventory structure, coarse fines saw significant inventory buildup, while fine ore, lump ore, and pellets experienced slight destocking. High-grade ore represented by IOCJ fines, supported by solid demand, showed notably larger destocking than other varieties.
As steel mills that underwent maintenance earlier gradually resume production, daily average hot metal output is expected to rebound strongly. The recovery in rigid demand will provide solid support for iron ore prices. Considering both structural pressure from port inventories and bottom support from production resumptions on the demand side, iron ore prices are likely to maintain a sideways movement in the near term.