Dalian iron ore futures continued to fluctuate with a firm tone today. The main contract, I2605, ultimately closed at 780, up 0.52% from the previous working day. Traders sold cargoes at prevailing market rates, whilst steel mills procured strictly on a needs basis. Overall market trading sentiment was moderate. In the physical market, transaction prices for PB Fines in the Shandong region ranged from 790–795 CNY, remaining largely stable compared to yesterday. In the Hebei region, transaction prices for PB Fines ranged from 805–812 CNY/tonne, also holding largely stable against the previous day. Due to recent maintenance overhauls at northern steel mills, hot metal output has declined. Consequently, the daily port offtake of iron ore has dropped significantly, leading to a continued accumulation of port inventories. Supply pressure on iron ore remains substantial. However, considering the approach of the year-end, macroeconomic sentiment remains optimistic. This provides support for the price floor. In the short term, iron ore faces limited room for movement in either direction. It is expected that iron ore will maintain a rangebound trend next week.

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Source: Metals Market Index (MMI)