[SMM Iron Ore Daily Review] short-term iron ore prices are expected to consolidate on a subdued trend

Iron ore futures traded weakly today, recovering slightly in the afternoon. The most-traded DCE contract I2609 closed at 749 yuan/mt, up 1.13%. Spot prices at Qingdao Port fell about 5–12 yuan/mt from the previous trading day. Trader quoting enthusiasm was mediocre, and steel mills' purchase willingness was also mediocre. Spot trading volume was mediocre.

Supply-side pressure on iron ore has yet to emerge, and overall inventory remains in a destocking channel. As of last weekend, total iron ore inventory at 35 major domestic ports was 145.13 million mt, down 2.03 million mt WoW; the daily average port pick-up volume edged down 55,000 mt to 3.22 million mt. Meanwhile, blast furnace maintenance intensity further increased. According to SMM statistics, the hot metal impact from blast furnace maintenance this week was 1.3584 million mt, up 67,500 mt WoW from the previous week. The impact next week is expected to be 1.5097 million mt, up 151,300 mt WoW, which is expected to keep demand on a declining trend. Based on supply-demand fundamentals, short-term iron ore prices are expected to consolidate on a subdued trend. [SMM Steel]

Note: The above information is compiled based on market communication and information from public channels, and does not constitute valid investment advice.