Today, DCE Iron ore futures trended stronger, with the most-traded I2605 contract closing at 753.5 RMB/ton, an increase of 0.67% from the previous trading session. In the physical market, spot prices were broadly unchanged from the prior day. Trader senment for offering cargoes was subdued, and steel mill procurement was largely confined to immediate requirements, with a widespread wait-and-see approach being adopted. Consequently, the overall trading atmosphere in the spot market was somewhat lackluster. An SMM survey indicates that the impact of blast furnace maintenance on hot metal produc on this week amounts to 1.8088 million tons, an increase of 61,600 tons week-on-week. This impact is projected to decrease by 88,100 tons next week. Currently, hot metal output remains somewhat suppressed due to environmental policy restric ons. However, as the resump on of work progresses following the holiday period, produc on is expected to stage a notable recovery. Furthermore, iron ore inventories at steel mills were significantly depleted during the Spring Fes val holiday and are now at a rela vely low level, which is expected to create a window for restocking and thereby drive an improvement in demand. However, considering that portside inventories remain at an elevated level and daily o akes from ports have yet to show significant improvement, iron ore prices are unlikely to overcome significant upward resistance in the near term and are expected to maintain a range-bound trajectory.

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Source: Metals Market Index (MMI)