Iron ore futures on the Dalian Exchange traded sideways in the morning session today. Influenced by market news, prices saw a sharp decline in the afternoon. The main contract I2605 ultimately closed at 757, down 1.3% from the previous trading day. Traders showed limited willingness to ofload goods, while steel mills remained cautious in their procurement. Overall market trading activity was subdued. In Shandong, the transaction price for PB fines ranged from 775 to 780 yuan per ton, down 5 –8 yuan from yesterday. In Hebei, the transaction price for PB fines stood at 790–795 yuan per ton, up 5 yuan from yesterday. Market news today was mixed. The Federal Reserve cut interest rates by another 25 basis points as expected, which generally stabilized market sentiment. However, several bearish rumors emerged during the trading session: First, it was rumored that ZK would tighten controls on storage periods for some overseas mines and iron ore traders, potentially imposing additional storage fees. At the same time, market sources suggested that a steel export licensing system may be announced tomorrow. These rumors exacerbated bearish sentiment, dragging iron ore prices down rapidly. Additionally, as the Central Economic Work Conference is nearing its conclusion, close attention should be paid to the policy signals released during the meeting and their potential impact on the market in the coming sessions.

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Source: Metals Market Index (MMI)