Iron Ore Prices Remain Weak under the Influence of Coal, Coke and Demand [SMM Daily Brief on Imported Ore]

The DCE iron ore market opened on a weak note this morning, recovering slightly in the afternoon session. The most-traded I2609 contract closed at 738.5 yuan/mt, down 0.54% from the previous trading session. Port spot prices remained stable compared to the previous day. Most traders followed market trends and showed moderate quoting willingness, while steel mills placed few inquiries. As of press time, spot trading volume was moderate.

This week, SMM survey estimated the impact from blast furnace maintenance at 1.1633 million mt, up 31,600 mt WoW. Iron ore demand weakened, with hot metal output expected to pull back due to maintenance and environmental protection-driven production restrictions. Additionally, expectations for the ninth round of coke price increases continued to ferment, with bearish sentiment in coal and coke spilling over into iron ore. Coupled with falling oil prices and interest rate hike expectations weighing on overall sentiment in the ferrous metals market, near-term iron ore prices are expected to remain in the doldrums.