Today DCE iron ore futures exhibited a firm trend, with the most active I2609 contract ultimately settling at 764 RMB per tonne, representing an increase of 0.99 per cent from the previous trading session. Physical spot prices rose by 2 to 5 RMB per tonne compared to the preceding day. Whilst traders actively presented their offers, steelmakers largely maintained a wait-and-see approach, procuring strictly on an as-needed basis; consequently, the overall physical transaction environment remained mediocre. Regarding fundamental data, SMM research reveals that the blast furnace utilisation rate across 242 sampled steelmakers reached approximately 90.21 per cent this week, marking a week-on-week increase of 0.91 per cent. Concurrently, average daily hot metal output attained 2.4441 million tonnes, representing a period- on-period expansion of 5,100 tonnes. The aggregate rigid demand for iron ore remains robust and is projected to sustain a trajectory of marginal growth into the forthcoming week. On the news front, market intelligence suggests that the restrictions previously imposed on certain cargo varieties have now been partially rescinded. Newly arriving iron ore cargoes will be permitted unimpeded port clearance, whereas the high inventories accumulated during the earlier restricted period remain constrained. Aggregate iron ore supply is anticipated to register a modest increase; however, given the prevailing high levels of consumption, this incremental supply is expected to be readily absorbed by the market, thereby negating any significant bearish pressure. Therefore, over the short term, iron ore valuations are expected to demonstrate robust downside support, maintaining a volatile trajectory with a distinctly firm bias.

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Source: Metals Market Index (MMI)