Today, iron ore futures retreated from highs, with the most-traded contract I2601 closing at 794, down 0.19% from the previous trading day. Traders sold at market prices; steel mills reduced inquiries, with purchase willingness remaining moderate. Market transaction sentiment was sluggish. In Shandong, PB fines traded at 793–798 yuan, down 0–5 yuan/mt from yesterday's transaction price; in Hebei, PB fines traded at 800–805 yuan/mt, down 1–4 yuan/mt from the previous day.
Today's SMM port pick-up volume data continued to decline, indicating a decrease in steel mills' purchase willingness. Port inventory accumulated again, and supply pressure continued to increase. Hot metal production is expected to decline further next week, with overall iron ore demand weakening further. Ore prices are anticipated to remain in the doldrums; however, considering the impact of macro news and the approaching delivery date, the spot-futures price spread is expected to narrow, limiting significant downside in futures prices.
