Restricted Spot Cargo Entered Circulation, Iron Ore Closed Down 0.89% [SMM Imported Ore Daily Brief]

Iron ore futures were in the doldrums today, declining in the morning session before rebounding in the afternoon. The most-traded contract I2609 ultimately closed at 780.5 yuan/mt, down 0.89% from the previous trading session. Spot prices fell 2-5 from the previous day. Traders showed moderate enthusiasm in offering, and steel mills restocked on an as-needed basis; overall spot transactions were thin.

Affected by the lifting of BHP's spot cargo restrictions, futures dipped slightly in the morning session, but no panic selling was observed. The near-term increase in spot cargo circulation is expected to cap upside room for iron ore. Additionally, according to market sources, the Simandou mine is expected to accelerate its shipment pace in the near term. Combined with the recent trend of rising mine shipments and port arrivals, supply side is expected to exert downward pressure on ore prices in the short term. Considering the demand side, iron ore prices are expected to remain in the doldrums in the near term.