Currently, iron ore futures prices are fluctuating upwards. The most traded contract I2505 finally closed at 797 yuan/mt, up 1.92% for the day. Traders are showing increased willingness to sell. Steel mills remain cautious, buying as needed. Today’s market transaction atmosphere is average. In Shandong, the main transaction price for PB fines was 785-790 yuan/mt, up 10 yuan/mt from yesterday; in Tangshan, the PB fine transaction price was around 810-815 yuan/mt, up 10-15 yuan/mt from yesterday. Industry data released today showed a strong performance at HRC, with demand seen experiencing significant growth during the off-season, supported by strong HRC export orders. Adding to the recent ongoing macro news, there was additional news in the afternoon about a cyclone in Australia affecting shipping from major mines in the region, which pushed iron ore prices higher towards the close. Given that restocking by steel mills ahead of the holiday is almost complete and future demand is unlikely to sustain, this could put pressure on further increases in iron ore spot prices. In the short term, ore prices may fluctuate at a high rate.
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Source: Metals Market Index (MMI)
