Today, DCE iron ore futures rose before falling today. The most-traded I2605 contract ultimately closed at 797.5 yuan/mt, down 0.44% from the previous trading session. Spot prices fell 2-5 yuan/mt from the previous trading day. Traders had a strong willingness to hold prices firm, while steel mills showed heavy wait-and-see senment with few inquiries; spot market transactions remained limited so far. Fundamentals side, total arrivals at Chinese ports last week fell 8.7% WoW to 24.42 million mt. Supply side, short-term ghtening improved the overall loose supply pattern. However, according to the latest SMM survey data, blast furnaces at steel mills na onwide remained in a state of production resumptions after entering April, but both new maintenance and production resumptions declined notably, providing stable support for ore prices on the downside. Nevertheless, relatively high port inventory levels and spot prices also dampened trading activity while capping upside potential for prices. News side, sporadic rumors about negotiation progress emerged in the market, but given downside risks ahead, most participants maintained strong wait and-see senment. Therefore, ore prices are expected to continue moving sideways in the short term, with little chance of a unilateral trend before new developments enter the market.

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Source: Metals Market Index (MMI)