Today, the DCE Iron ore futures showed a weak trend today. The most-traded contract I2609 closed at 809.5 yuan/mt, down 0.67% from the previous trading session. Port spot prices fell 2-5 yuan from the previous day. Traders showed moderate enthusiasm in offering quotes; steel mills purchased as needed; overall spot transaction activity was relatively tepid. The latest SMM statistics showed that total iron ore inventory at 35 main ports nationwide stood at 148.76 million mt, down 1.09 million mt WoW. Overall inventory saw slight destocking, with supply tightening marginally, though the overall supply remained relatively ample. During the same period, some blast furnaces were under maintenance, and daily average hot metal production pulled back slightly. Daily average port pick-up volume edged down by 21,000 mt to 3.244 million mt. Although pig iron production pulled back as individual blast furnaces entered maintenance, given the currently robust demand outside China and relatively comfortable profit margins at steel mills, iron ore fundamentals remained well-supported. Therefore, iron ore prices are expected to continue a fluctuating trend at highs in the short term until new developments enter the market.

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Source: Metals Market Index (MMI)