Today, iron ore futures traded in the doldrums. The most-traded contract I2601 closed at 790, down 1.74% WoW. Traders' willingness to sell was moderate; steel mills' wait-and-see sentiment intensified, with some mills restocking at low levels. Market transaction atmosphere was moderate. In Shandong, mainstream transaction prices for old PB fines were around 780-785 yuan/mt, down 10-13 yuan/mt from the previous day; in Tangshan, PB fines transaction prices were 790-795 yuan/mt, up 10-15 yuan/mt from the previous day.
As of September 26, SMM data showed that iron ore inventories at 35 ports nationwide decreased by 540,000 mt WoW, continuing the destocking trend. Meanwhile, the daily average port pick-up volume for imported ore increased by 102,000 mt WoW to 3.215 million mt, indicating steel mills accelerated restocking ahead of the National Day holiday. However, as the holiday approaches, mills have largely completed restocking, reducing support for ore prices. Coupled with rising risk-averse sentiment in the market before the holiday, iron ore prices plunged in the afternoon session. Overall, iron ore prices are expected to fluctuate rangebound next week.
