SMM daily review and forecast for iron ore market

The most-traded I2309 iron ore contract closed up 1.74% at 849.5 yuan/mt today. Selling appetites from iron ore traders were acceptable, while steel mills purchased on a need-to basis. Trading sentiment was fair. The transaction price of PB fines in Shandong were mostly 883-893 yuan/mt, up 11-13 yuan/mt than yesterday. The recent production cuts and crude steel production restrictions kept giving the market jitters, but operating rate of steel mills was high, boosted by good profits. However, production restrictions of sinter units caused by environmental protection remained, and may be reinforced in the future. The current market sentiment changed greatly. But fundamentals had little impact on iron ore. It is expected that iron ore prices will still be volatile in the short term.