Today, the most-traded iron ore futures contract held up well during the day, with the most-traded contract I2601 closing at 799.5, down 0.06% from the previous trading day. Traders sold at market prices; some steel mills locked in profits, and procurement volume increased. Most steel mills remained cau ous and adopted a wait and-see approach, with purchase willingness remaining moderate. Market transac on senment was moderate. In Shandong, mainstream transac on prices for PB fines were 793-795 yuan/mt, up 3-5 yuan/mt from yesterday; in Tangshan, transac on prices for PB fines were 795-800 yuan/mt, up 0-5 yuan/mt from yesterday. As of September 12, according to SMM sta s cs, the total iron ore inventory at 35 ports na onwide was 130.41 million mt, up 880,000 mt WoW. Meanwhile, daily average port pick-up volume for imported ore was 3.05 million mt, up 75,000 mt WoW. Despite the increase in port pick-up volume, a significant rise in port arrivals last week led to a slight accumula on in inventory this week. In the short term, hot metal produc on con nues to rebound, and with some steel mills star ng pre-holiday stockpiling, iron ore demand con nues to increase. Addi onally, the US Fed’s interest rate cut is expected to be implemented next week, providing bullish support for commodi es. Iron ore prices are expected to have further upside poten al next week.

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Source: Metals Market Index (MMI)