Hot Metal Production Growth Provides Strong Support for Iron Ore Prices [SMM Imported Ore Daily Brief]

Published: Jun 2, 2026 17:02

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Iron ore futures shifted from weak to strong today, with the most-traded contract I2609 closing at 786.5 yuan/mt, up 0.77% from the previous trading price. Port spot prices rose by 3-5 yuan accordingly. Traders actively quoted and sold; steel mills showed increasing wait-and-see sentiment, mainly purchasing as needed; overall market trading activity was moderate. The transaction price of PB fines at Shandong ports was 755 yuan/mt. The transaction price of PB fines at Caofeidian port was 765 yuan/mt.

According to SMM's data on blast furnace impact from maintenance, production resumptions at large blast furnaces this week were expected to drive hot metal production further up, providing some support for ore prices. However, the increase in hot metal production also boosted steel output, and with end-use demand already weakening, steel inventory pressure was set to rise, making it harder for prices to rise. Therefore, iron ore prices were expected to be under pressure, with increasing short-term upside resistance and limited upside room.

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