Today, the most-traded iron ore futures contract I2601 plunged sharply, closing at 766 yuan, down 2.67% from the previous trading day. Traders' willingness to sell weakened, while steel mills' wait-and-see sentiment intensified with moderate purchase willingness at the week's start. Market transactions remained sluggish. In Shandong, mainstream transaction prices for PB fines stood at 760-765 yuan/mt, down 10-15 yuan/mt WoW. In Tangshan, PB fines traded around 770-775 yuan/mt, declining 15-20 yuan/mt WoW.
As the 93rd military parade approaches, blast furnace maintenance at Tangshan steel mills in Hebei increased again. Henan also imposed production restrictions, with most mills cutting sintering output by 30-50% and some blast furnaces idling for 3-5 days. This expanded the weekly hot metal production decline, significantly weakening iron ore demand. Market rumors about potential crude steel output cuts in September further dampened sentiment. However, hot metal output is expected to recover over the weekend, maintaining overall robust iron ore demand. Although supply growth is anticipated, short-term inventory drawdowns and limited supply-demand imbalance suggest prices may rebound after a brief correction.
