The DCE iron ore futures weakened after surging during the night session today, with contract I2609 closing at 740 yuan/mt, up 0.48% from the previous trading day. Port spot prices rose by 5-8 yuan/mt from the previous trading day. Trader activity was moderate, steel mills purchased as needed, and spot trading volume has been average so far.
Fundamentals of iron ore supply and demand remain stable, with supply on the loose side, and are expected to be steady as the pace of mine shipments slows. On the demand side, as the Southeast Asian export market enters the steel off-season, regional traders have begun to proactively cut prices to compete, causing China's export demand to weaken. However, there is still buffer room in domestic steel inventory, which is unlikely to trigger steel mills' willingness to cut production in the short term. On the news front, aside from rumors of supply tightening for specific products, there were no events determining the market trend. Therefore, considering all factors, short-term iron ore prices are likely to fluctuate within a range. [SMM Steel]
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