Pessimistic Sentiment Eases, Iron Ore Prices Rebound [SMM Brief Commentary]

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Today, DCE iron ore futures opened lower but closed higher, fluctuating upward throughout the day. The most-traded I2505 contract finally settled at 754.5 yuan/mt, up 0.53% for the day. Traders showed moderate enthusiasm for selling, while steel mills purchased as needed. Today's market transactions were moderate. In Shandong, the mainstream transaction prices of PB fines were around 760 yuan/mt, up by 5-10 yuan/mt compared to yesterday. In Tangshan, PB fines were traded at 775 yuan/mt, also up by 5-10 yuan/mt from yesterday. Today's industrial data continued to weaken. The total inventory of the five major steel products saw a slight inventory buildup. Apparent demand for rebar and HRC continued to decline, in line with the seasonal pattern. Additionally, with the recent release of pessimistic sentiment, market sentiment slightly improved. Coupled with a recent improvement in iron ore demand, ore prices rebounded. Considering the fundamentals are still expected to weaken, ore prices are unlikely to see a significant increase this week and are expected to fluctuate at low levels.