Today’s iron ore market trended higher before easing off. The most active contract I2609 closed at 784 yuan/tonne, up 0.64% from the previous session. Spot prices edged down by 0–2 yuan/tonne day-on-day. Traders maintained active quotations, while steel mills made restocking purchases on an as-needed basis; overall spot trading volume remained light. In terms of fundamentals, this week’s survey shows that blast furnace maintenance reduced hot metal output by 1.2625 million tonnes, a decrease of 50,000 tonnes week-on-week. Output is expected to fall by a further 3,000 tonnes next week. Overall demand remains firm, with resilient rigid demand for iron ore, providing relatively stable downside support for iron ore prices. On the news front, market rumors suggested that previously restricted port inventories were expected to be released this week, but no further updates have emerged so far. Amid risk and price considerations, market participants have adopted a strong wait-and-see stance. Therefore, in the short term, absent new developments, iron ore prices are expected to remain range-bound at high levels. If the previously restricted inventories are released, they may weigh on iron ore prices and trigger a short-term weakening.

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Source: Metals Market Index (MMI)