Slight Improvement on the Demand Side; Iron Ore Futures and Spot Prices Both Strengthened Today [SMM Brief Commentary]

Published: Mar 6, 2026 17:27

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DCE iron ore held up well today and dropped back slightly before the close. The most-traded contract, I2605, finally closed at 772 yuan/mt, up 1.38% from the previous trading session. The spot price rose 10-15 yuan from the previous trading day. Traders were moderately active in quoting, while steel mills made fewer inquiries. Spot trading sentiment was subdued.

According to SMM statistics, total iron ore inventory at 35 major ports nationwide stood at 154.8 million mt, down 590,000 mt MoM, indicating a slight destocking trend. Over the same period, the daily average port pick-up volume rebounded to 2.55 million mt, up 145,000 mt MoM, suggesting a faster pace of port shipments. Demand improved slightly.

The core logic supporting iron ore prices is gradually shifting from macro demand to structural contradictions on the supply side. Market concerns over structural shortages of certain mainstream mid- to high-grade ore types are fermenting, and these expectations have strengthened bullish sentiment, providing solid bottom support for prices.

Looking ahead, the market is expected to see a tug-of-war between supply and demand in the short term. On the one hand, based on the production schedule, enforcement of blast furnace maintenance is expected to strengthen next week, which will create a phased restraint on immediate iron ore consumption. Against this backdrop of weaker demand, the aforementioned structural tightness on the supply side may be temporarily less apparent. However, once this round of concentrated maintenance ends and blast furnaces resume production as planned, iron ore demand is set to warm up in the short term. Driven by a rebound in demand, the structural shortage contradiction on the supply side will quickly stand out as the market’s main trading logic, and iron ore prices are expected to, overall, hold up well at that time.

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