Today, the DCE iron ore fluctuated in the doldrums, with the most-traded contract I2605 eventually closing at 799.5 yuan/mt, down 0.50% from the previous trading session. Spot prices fell by about 2-5 yuan from the previous trading day. Traders were moderately active in offering quotes, while steel mills mainly restocked to meet rigid demand; as of now, spot market transactions were mediocre. This week, total inventory at 35 main ports fell by 300,000 mt WoW to 155.48 million mt; over the same period, average daily port pick-up volume is expected to increase by 3 million mt, up 150,000 mt WoW. As steel mills gradually resumed blast furnace production, hot metal production rose steadily, effectively supporting rigid demand for iron ore. From a macro perspective, market expectations strengthened that the conflict in the Middle East may continue, while energy prices hovered at highs, providing some cost support for iron ore. However, as steel mill profits continued to shrink and buying interest remained weak, upside room for iron ore prices was capped. Overall, iron ore prices are expected to remain in the doldrums going forward.

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Source: Metals Market Index (MMI)