Iron ore futures fell sharply today, trading in the doldrums throughout the day. The most-traded contract I2601 closed at 782, down 2.07% from the previous day. Traders showed a moderate willingness to sell, while some steel mills made purchases at lower levels. Market transaction sentiment was moderate. In Shandong, mainstream transaction prices for old PB fines were around 778 /mt, down 17-18 /mt from the previous day; in Tangshan, transaction prices for PB fines were 785-790 /mt, down 15-17 /mt from the previous day. With the impact of special port fees for vessels eliminated, the actual effect on iron ore freight costs was limited. Yesterday’s concerns eased, and iron ore prices retreated from highs. In the short term, iron ore demand is expected to weaken. Market worries about negative feedback have intensified, capping the upside for ore prices. However, according to SMM’s blast furnace maintenance survey results, the decline in hot metal production is relatively small in the near term, and iron ore demand remains high, leaving limited downside for ore prices.
Source: Metals Market Index (MMI)
