Iron ore futures moved downwards after a higher opening today, with the most-traded contract I2601 closing at 795.5, down 0.81% from the previous trading day. Traders sold at market prices, while steel mills purchased as needed at lower levels. Market sentiment was moderate. In Shandong, mainstream transaction prices for PB fines were in the range of 790-793 yuan/mt, down 3-5 from yesterday; in Tangshan, transaction prices for PB fines were around 795 yuan/mt, down 5-10 yuan/mt from yesterday. From today’s industry data, apparent demand rebounded, while the pace of inventory buildup for the five major steel products narrowed. However, rebar demand remained weak, and with iron ore prices at elevated levels after sustained gains, some bulls chose to take profits, leading to a pullback in futures prices. Nevertheless, considering that overall iron ore demand remains at a relatively good level and end-use demand is gradually recovering, ore prices are expected to continue fluctuating at highs in the short term.

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Source: Metals Market Index (MMI)