The iron ore market showed a volatile pattern today, with prices fluctuating upward in the morning before retreating in the afternoon. The main contract I2605 closed at 812 yuan/ton, up 0.12% from the previous trading session. Spot prices rose by approximately 2 yuan/ton compared to the previous trading day. Traders showed moderate willingness to offer quotes, while steel mills primarily purchased for just-in-time replenishment, with inquiries remaining cautious. As of now, spot market transactions are relatively subdued. On the fundamental data front this week, according to SMM’s monitoring of average daily hot metal output, the blast furnace operating rate increased by 1.05 percentage points week-on-week to 89.71%, while average daily hot metal output reached 2.436 million tons, up 25,700 tons from last week. The steady resumption of blast furnace operations over the past three weeks has effectively driven rigid demand for iron ore raw materials, providing solid support for iron ore prices. Overall, the iron ore fundamentals exhibit strong downward support while facing upward pressure from inventory levels. In the short term, iron ore prices are expected to fluctuate within a narrow range, with potential price movements awaiting new market information or changes.

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Source: Metals Market Index (MMI)