DCE iron ore futures were in the doldrums today. The most-traded contract I2609 closed at 781.5 yuan/mt, edging down 0.32% from the previous trading session. Port spot prices were basically flat compared to the previous day. Traders showed moderate enthusiasm in offering quotes; steel mills made fewer inquiries with heightened wait-and-see sentiment and cautious procurement. As of now, overall spot market transactions remained limited. The transaction price of PB fines at Shandong ports was 753 yuan/mt. The transaction price of Mac fines at Caofeidian port was 763 yuan/mt.
According to an SMM survey, on May 27, the blast furnace operating rate of the 242 steel mills tracked by SMM was 89.70%, up 0.15 percentage points WoW. The daily average hot metal production of the sample steel mills was 2.4281 million mt, up 2,300 mt WoW. This week, one blast furnace entered maintenance and three blast furnaces resumed production, mainly concentrated in Hebei and Henan. Recent production resumptions at blast furnaces pushed overall hot metal production on an upward trend. Growing iron ore demand provided bottom support for ore prices. However, as the end-use demand off-season deepened, demand is expected to weaken further, and iron ore prices are expected to remain in the doldrums in the short term.
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