Today, the DCE iron ore futures contract continued its fluctuating trend at lows today, with the most-tradedcontract I2605 closing at 740.5 yuan/mt, down 1.79% from the previous trading session. Spot prices fell 5-8 yuan/mt from the previous session. Traders showed limited enthusiasm in offering, while steel mills remained cautious and watchful. Overall market trading atmosphere was sluggish, with few deals concluded. Last week, SMM global iron ore shipments totaled 32.29 million mt, up 8.83 million mt WoW, an increase of 37.6%. This week, shipments from Australia saw a notable rise, Brazil increased slightly, while non-mainstream countries experienced a slight decline overall. SMM China iron ore arrivals reached 27.75 million mt, up 3.12 million mt WoW, a 12.6% increase. Seasonal disruptions were relatively small, and the overall iron ore supply remained relatively loose. However, on the demand side, an accident at a steel mill during the holiday led to a full shutdown of blast furnaces for maintenance. Although some steel mills had restocking needs after the holiday, downstream production resumptions had not yet commenced, and purchase willingness from steel mills remained weak, providing limited support to spot prices. Later attention will be on the pace of downstream production resumptions and the impact of the Two Sessions on market sentiment. Iron ore prices are expected to continue fluctuating at lows this week.

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Source: Metals Market Index (MMI)