SMM

Today, iron ore futures retreated from highs, with the futures market in the doldrums. The most-traded contract I2605 closed at 813 yuan/mt, down 0.37% from the previous trading day. Spot prices fell 8–15 yuan from the previous day. Traders' quoting enthusiasm was moderate, mostly following the market trend; steel mills continued to purchase based on rigid demand, and overall market trading remained sluggish.
Supply and demand side, blast furnace maintenance intensity dropped back slightly recently, and hot metal production gradually rebounded, providing some support to iron ore demand. According to SMM survey data, iron ore inventories at 10 ports saw a slight drawdown this week, with total inventories at 114.64 million mt, down 570,000 mt WoW. Market sentiment side, after several days of strong gains, some market funds chose to take profits; meanwhile, news circulated that Jinbuba fines were allowed for port cargo pick-up, leading to a pullback in futures.
Despite supportive fundamental data, spot trading activity cooled, with insufficient momentum to rush to buy amid continuous price rises. Overall performance showed strong fundamental support but futures under pressure. However, considering the pre-Chinese New Year restocking window remains and hot metal production is on an upward trend, downside support remains solid. Overall, ore prices are expected to fluctuate at highs in the short term.