Port inventory buildup of 2.85 million mt, port cargo pick-up pulls back; spot demand weakens, ore prices remain weak in a narrow range [SMM Iron Ore Daily Review]

Iron ore futures moved steadily today. The most-traded DCE contract I2701 closed at 672.5 yuan/mt, up 0.07% from the previous trading day. Spot prices at Qingdao Port rose by an average of 2 yuan/mt. Trader offering activity was moderate, while steel mills mostly made need-based restocking purchases, leaving overall market trading sluggish.

From this week's inventory data, signs of weakening spot demand are gradually emerging, and a rebound in hot metal output still needs time to be confirmed. According to the latest SMM statistics, as of October 16, total iron ore inventory at 35 main ports nationwide stood at 148.3 million mt, up 2.85 million mt WoW. Daily average port pick-up volume edged down 50,000 mt WoW to 3.185 million mt. Steel mills are currently facing significant losses, with procurement still largely need-based and limited restocking willingness. Meanwhile, the supply-side pace remains relatively loose, and port inventory may continue to build up. Barring any unusual news-driven disruption, iron ore prices are expected to remain weak and move sideways in the short term. [SMM Iron Ore]