Iron ore futures experienced volatile trading, opening higher but weakening throughout the day. The main contract I2605 eventually closed at 808 yuan/ton, down 0.80% from the previous trading session. Spot prices fell by about 5 yuan compared to the previous trading day. Traders showed moderate interest in quoting prices, while steel mills mainly purchased for essential needs, with inquiries made cautiously; spot market transactions remained relatively subdued as of now. In terms of fundamental data, SMM’s weekly maintenance statistics show that blast furnace maintenance this week will affect iron production by 1.4281 million tons, a decrease of 186,100 tons year-on-year. Next week’s maintenance impact is expected to ease further, by approximately 40,000 tons. As a result, the刚性 demand for iron ore remains strong this week, providing solid support to prevent sharp declines in iron ore prices. However, significant upward pressure persists. On one hand, port inventories remain high (around 155 million tons); on the other hand, higher price levels have dampened transaction activity in the spot market, limiting upward momentum for iron ore prices. In summary, iron ore prices are expected to fluctuate within a range in the short term, with the market likely to remain in a stalemate.

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Source: Metals Market Index (MMI)