Today,DCE iron ore futures initially weakened but later strengthened, with the main contract I2605 closing at 779.5, a slight increase of 0.26% compared to the previous trading day. Traders showed moderate enthusiasm for shipments, while steel mills procured based on demand, resulting in an average volume of inquiries. Market trading activity was relatively stable. In the Shandong region, the transaction price for PB fines ranged between 785 and 795 yuan, remaining largely unchanged from yesterday. In the Hebei region, the transaction price for PB fines ranged between 805 and 810 yuan/ton, also showing little variation from yesterday. According to an SMM survey, on December 24, the average daily hot metal production of 242 steel mills tracked by SMM was 2.3431 million tons, down 4,600 tons from the previous period. This week, some blast furnaces that underwent routine annual maintenance resumed operations as scheduled, contributing to a slight increase in hot metal output. However, environmental protection and production restriction policies remain stringent, with some steel mills in Hebei and Liaoning provinces still scheduling maintenance for their blast furnaces. Overall, hot metal production continues to decline. Hot metal output is expected to reach a temporary bottom next week. Starting in January, some blast furnaces under production controls will gradually resume operations, leading to a slow recovery in hot metal production. This is expected to provide some support to iron ore prices. In the short term, iron ore demand remains at a low point, port inventories continue to accumulate, and it will be difficult for ore prices to break through on the upside. Prices are likely to remain within a rangebound trend.

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Source: Metals Market Index (MMI)