Today, the most-traded iron ore futures contract I2601 was in the doldrums, closing at 770, down 0.71% from yesterday. Traders’ quotation enthusiasm was moderate; steel mills were cautious and observing, with purchase willingness being average as the weekend approached. The market transaction atmosphere was sluggish. In Shandong, mainstream transaction prices for PB fines were around 765-770 yuan/mt, down 2 yuan/mt from yesterday; in Tangshan, PB fines transaction prices were around 775-780 yuan/mt, down 2-5 yuan/mt from yesterday. Looking ahead to next week, steel mills in north China will gradually implement environmental protection-driven production restrictions, leading to blast furnace shutdowns and a slight decline in hot metal production. However, on the supply side, there is still room for an increase during the peak season, presenting an overall pattern of strong supply and weak demand. Iron ore prices remain under pressure. Nevertheless, due to the limited scope and short duration of this round of production restrictions, the total impact on hot metal output is minimal, and the market outlook is optimistic. Ore prices are unlikely to see a significant drop and may continue to be in the doldrums. Attention should be paid to the impact of weather conditions in the north next week on steel mill operations.

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Source: Metals Market Index (MMI)