Today, the iron ore futures turned from weak to strong, with the most-traded contract I2601 closing at 790.5, up 1.74% from yesterday. Traders showed moderate willingness to sell; steel mills adopted a wait-and-see sentiment and purchased as needed, while some mills with better finished product sales actively restocked. The market transaction atmosphere was average. In Shandong, mainstream transaction prices for PB fines were in the range of 780-785 yuan/mt, up 10-15 yuan/mt from yesterday; in Tangshan, PB fines transaction prices were around 790-795 yuan/mt, also up 10-15 yuan/mt from yesterday.

From today’s industry data, overall steel production increased, but the growth in iron ore supply was limited. Additionally, rebar apparent demand saw a slight increase. Market sentiment was optimistic, providing support for ore prices. However, with the implementation of production restrictions in northern regions next week, overall iron ore demand is still weakening marginally, and iron ore prices will continue to face pressure in the short term.

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Source: Metals Market Index (MMI)