Today, the DCE iron ore futures continued their weak trend today. The most-traded contract I2609 ultimately closed at 753.5 yuan/mt, down 0.33% from the previous trading day. Spot prices edged up 2 yuan/mt from the previous trading day. Traders showed moderate enthusiasm in offering quotes. Most steel mills held a bearish outlook on the market and mainly adopted a wait-and-see approach, with only a few steel mills conducting tenders for procurement on an as-needed basis. As of now, spot market transactions remained thin. Fundamentals side, hot metal production has rebounded to elevated levels, providing rigid support for iron ore demand. However, fluctuating news regarding long-term contract negotiations and the US-Iran conflict continued to create disturbances in futures trends. Considering that long-term contract negotiations have been priced in ahead of time, if the negotiations are finalized next week, iron ore prices may see a rebound after the rapid decline.

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Source: Metals Market Index (MMI)