Rigid Demand Remained Strong, but Spot Prices Struggled to Rise [SMM Imported Ore Daily Brief]

Today, Dalian iron ore futures first rose then retreated. The most-traded contract I2609 ultimately closed at 784 yuan/mt, up 0.64% from the previous trading session. Spot prices fell 0-2 yuan/mt from the previous trading day. Traders were active in quoting, while steel mills restocked on demand; overall spot transactions were thin.

Fundamentals side, this week's survey results showed that blast furnace maintenance affected hot metal production by 1.2625 million mt, down 50,000 mt WoW, and is expected to continue declining by approximately 3,000 mt next week. Overall demand remained solid, with robust rigid demand for iron ore and relatively stable downside support for ore prices. News side, market rumors suggested that port inventory previously subject to restrictions was expected to be released this week, but no further updates have emerged so far. Some market participants adopted a strong wait-and-see stance out of risk and price considerations.

Therefore, in the short term, barring new developments, ore prices are expected to continue to fluctuate at highs. If previously restricted inventory is released, it may weigh on ore prices in the short term, leaving them in the doldrums.