Today, the DCE iron ore market extended its volatile and weak trend. The benchmark contract, I2605, closed at 777.5 RMB/tonne, representing a decline of 1.14% from the previous trading day. In the physical market, spot prices fell by a cumulative 2–5 RMB/tonne. Traders predominantly sold at prevailing market rates, while steel mills maintained a ‘wait-and-see’ stance. Inquiry activity remained low, resulting in a generally subdued trading atmosphere. According to the latest SMM statistics, as of 30 January, total iron ore inventory across 35 major ports nationwide has climbed to a high of 153 million tonnes. This represents a significant week-on-week accumulation of 2.77 million tonnes, highlighting continued pressure from visible inventory build-up. Meanwhile, daily average port discharge volumes were recorded at 2.43 million tonnes; although this marks a slight week-on-week recovery of 18,000 tonnes, the overall increase remains marginal. Looking ahead, supply-side pressure shows no signs of abating. Due to the lagged transmission of high-volume overseas shipments dispatched earlier, inbound arrivals are expected to maintain a growth trajectory. Under the combined influence of sustained inbound resource realization and marginally weakening demand, the trend of port inventory accumulation is unlikely to reverse. The market’s supply-demand structure is set to face further compression, and iron ore prices are projected to continue their volatile and weak operation in the short term

Download PDF

Source: Metals Market Index (MMI)