Spot Transactions Remained Sluggish, Iron Ore Closed Down 1.35% [SMM Daily Review on Imported Ore]

DCE iron ore futures trended weaker overall today. The most-traded contract I2609 ultimately closed at 766.5 yuan/mt, down 1.35% from the previous trading session. Spot prices fell 5-8 yuan/mt from the previous trading day. Traders were only moderately active in offering, while steel mills were cautious in procurement with fewer inquiries; spot market transactions were mediocre so far.

According to SMM survey data, daily average hot metal production increased by 8,400 mt WoW this week, reaching 2.439 million mt. Blast furnace capacity utilization rate rose to 90.02%. The number of blast furnaces under maintenance decreased significantly overall, providing strong support for rigid demand for iron ore in April. Despite the fundamentally positive conditions, the overall market trend was still influenced by news. Reports of breakthrough progress in negotiations triggered market concerns over potential future supply, leading to downward pressure on prices. Meanwhile, persistently sluggish spot market transactions also weighed on the iron ore market. Overall, iron ore prices are expected to continue a volatile and bearish trend going forward.