Today, the DCE iron ore futures were in the doldrums today, declining in the morning session before rebounding in the afternoon. The most-traded I2609 contract ultimately closed at 780.5 yuan/mt, down 0.89% from the previous trading session. Spot prices fell 2-5 from the previous day. Traders showed moderate enthusiasm in offering prices, and steel mills restocked on an as-needed basis; overall spot cargo transactions were limited. Affected by the lifting of BHP’s spot cargo restrictions, futures dipped slightly in the morning session, but no panic selling was observed. The increase in spot cargo circulation in the short term is expected to cap upside room for iron ore. Additionally, according to market sources, the Simandou iron mine is expected to accelerate its shipment pace in the near term. Combined with the recent trend of rising mine shipments and port arrivals, the supply side is expected to exert downward pressure on ore prices in the short term. Considering the demand side, iron ore prices are expected to remain in the doldrums in the near term.

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Source: Metals Market Index (MMI)