Today, Dalian iron ore futures traded with a slight upward trend. The main contract I2605 opened higher and maintained high-level volatility, finally closing at 797 points, up 0.95% from the previous trading day. In terms of spot goods, traders are still active in shipping, steel mills are generally in the mood to purchase, and there are few enquiries. The overall transaction atmosphere in the market is still weak. In terms of price, the transaction price of PB powder in Shandong area was 800-806 yuan/ton, up 5-7 yuan/ton from yesterday; the transaction price of PB powder in Hebei area was 813-825 yuan/ton, up 5-7 yuan/ton from yesterday. The market sentiment was relatively positive, driving the market to open higher, but the actual transaction follow-up was limited, and the market was consolidating at a high level. From the supply side, last week’s SMM shipping data showed that global iron ore shipments increased slightly by 4.9% month-on-month, while arrivals decreased by 4.2% month-on-month. In the short term, iron ore supply is still at a relatively high level, and port inventories are expected to continue to accumulate, which will put some pressure on ore prices. However, with the end of the new year’s steel mill production target restrictions, some steel mills’ blast furnaces have resumed production one after another, and the output of molten iron is expected to rebound significantly, forming a phased support for iron ore prices. Overall, iron ore prices may continue to fluctuate strongly in the short term.

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Source: Metals Market Index (MMI)