DCE iron ore futures were in the doldrums today, with the most-traded contract I2609 closing at 780.5 yuan/mt, edging down 0.06% from the previous trading session. Port spot prices fell 1-5 yuan from the previous day. Traders showed moderate enthusiasm in offering prices; steel mills inquired cautiously, with transactions mainly concluded at low prices; overall trading activity was lukewarm. The transaction price of PB fines at Shandong ports was 750 yuan/mt. The transaction price of PB fines at Caofeidian port was 756 yuan/mt, and that of Jimblebar fines was 725-730 yuan/mt.
According to today's industry data, total inventory of the five major steel products continued destocking, and although demand weakened somewhat, it remained resilient. Meanwhile, steel mill profits stayed stable, and hot metal production still had room to edge up. Combined with geopolitical impacts from the US-Iran conflict and the Russia-Ukraine conflict, short-term cost support persisted. Iron ore prices are expected to find bottom support in the near term and continue to move sideways.
