Today, the iron ore futures were in the doldrums, with the most-traded I2601 contract closing at 776.5, down 0.7% from yesterday’s price. Traders sold goods according to market conditions; steel mills purchased as needed, with moderate inquiries. The overall market transaction atmosphere was average. In Shandong, the mainstream transaction prices for PB fines were 770-772 yuan/mt, up 8-10 yuan/mt from yesterday; in Tangshan, the transaction prices for PB fines were around 775-780 yuan/mt, down 10-15 yuan/mt from yesterday.

The impact of yesterday’s supply-side incident on market sentiment has gradually weakened, and the price logic has returned to fundamentals. According to SMM survey data, this week’s impact from maintenance on blast furnaces was 1.1328 million mt, up 6,100 mt WoW. The reduction in hot metal was relatively limited. However, it is expected that next week’s impact from maintenance will increase by 221,100 mt, leading to a significant decline in hot metal production. Coupled with the imminent implementation of production restrictions, steel mills have a weak outlook for future demand, low purchase willingness, and strong pressure on ore prices. It is expected that prices will continue to be in the doldrums in the short term.

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Source: Metals Market Index (MMI)