The iron ore futures rose con nuously this morning but pulled back slightly in the a ernoon. The most-traded contract I2601 finally closed at 802.5 yuan, up 0.38% from the previous working day. Spot cargo prices at ports were basically flat compared with the previous working day, with PB fines in Shandong transacted at 800-805 yuan, basically unchanged from yesterday’s level, and those in Hebei at 810-815 yuan/mt, up 0-5 yuan/mt from yesterday. Trading ac vity in the market was moderate today, with most traders selling at market prices. Steel mills purchased as needed, and inquiries were limited. The mee ng between the Chinese and US heads of state boosted market senment, driving futures higher in the morning session. However, with no further confirma on of news in the a ernoon, some bulls chose to take profits, leading to a slight pullback in prices. Overall, as details of the mee ng are gradually released, macro expecta ons remain rela vely opmis c, providing some support for iron ore prices. Nevertheless, the con nuous rise in raw material prices has significantly squeezed steel mill profits recently, with losses widening at some mills, raising the possibility of involuntary produc on cuts down the road, which would in turn cap the upside room for ore prices. Taken together, iron ore prices are expected to hold up well in the short term, but the pace of gains is likely to narrow gradually.

Download PDF

Source: Metals Market Index (MMI)