Today, the most-traded iron ore futures contract I2601 continued to hold up well, closing at 787.5 yuan/mt, up 0.77% from yesterday. Traders’ willingness to sell remained moderate, while steel mills’ wait-and-see sentiment intensified, leading to a decline in the transaction sentiment index. Market trading activity was sluggish. In Shandong, mainstream transaction prices for PB fines were 775-778 yuan/mt, down 2-5 yuan/mt from yesterday, while prices in Tangshan held steady at 790-795 yuan/mt.

This week’s SMM port inventory data showed that port inventories continued to decline as the drop in port arrivals outpaced the decrease in port pick-up volume. Additionally, some steel mills in Tangshan received production restriction notices today, requiring concentrated shutdowns from tonight until the 3rd. However, given that production will quickly resume starting next Thursday, the overall impact is expected to be limited. Coupled with the current positive macro sentiment, ore prices are projected to dip first before rebounding next week.

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Source: Metals Market Index (MMI)