Today, iron ore futures prices experienced sideways weakness, with the main contract DCE I2601 closing at 771, down by 0.58% compared to yesterday. Port spot prices declined by 2-5 yuan from the previous trading day. In Shandong, PB powder transactions ranged between 775-780 yuan per ton, a decrease of 2-5 yuan/ton from yesterday. In Hebei, transaction prices for PB powder ranged between 790-795 yuan per ton, down by 5 yuan/ton. Steel mills’ procurement activity has weakened, and traders are primarily selling at reasonable prices. Overall trading volume remains moderate. This week, steel mill procurement demand has decreased, port throughput has declined, and inventories at ports have risen more rapidly. Looking ahead to next week, Tangshan will implement stricter environmental restrictions to address air quality concerns, likely suppressing blast furnace and sintering plant operation levels, which in turn will reduce iron ore demand and exert downward pressure on prices in the short term. However, the potential for further declines may be limited by macroeconomic factors, including upcoming bilateral talks between China and the US and expectations of Federal Reserve interest rate cuts, which could provide some support to market sentiment.

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Source: Metals Market Index (MMI)