Iron ore futures fluctuated with a strengthening bias today, with the main contract I2605 ultimately closing at 787.5 yuan per ton, up 0.90% from the previous trading session. Meanwhile, spot prices increased by 2-3 yuan compared to the previous trading day. Traders showed moderate enthusiasm in quoting prices, while steel mills made inquiries. Overall trading activity in the spot market was sluggish. According to SMM tracking surveys, the blast furnace operating rate at 242 steel mills stood at 85.99% this week, with average daily hot metal production reaching 2.3514 million tons, a decrease of 36,400 tons from the previous week. Several steel mills in the Hebei region underwent concentrated maintenance due to safety and environmental inspections, with relatively short maintenance cycles. As a result, iron ore demand saw a noticeable decline this week. Looking ahead, given the short maintenance cycles for most blast furnaces, the intensity of maintenance is expected to gradually ease in the later period. Average daily hot metal production is likely to recover quickly, and iron ore demand may improve as early as next week. In summary, iron ore prices are expected to follow a fluctuating and weakening trend in the near term.

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Source: Metals Market Index (MMI)