Iron Ore Futures Fluctuate Amid Weak Demand

The iron ore market has shown fluctuating trends over the past few days, according to reports from the Metals Market Index (MMI). On August 12th, the DCE I2609 contract settled at 720.5 yuan/mt, up by 0.14% compared to the previous session. This move was followed by a slight decline in spot prices at Qingdao Port, with a fall of 0–2 yuan/mt from the prior trading day (Hellenic Shipping News).

On August 13th, iron ore futures continued their fluctuation, as the DCE front-month contract I2609 settled lower at RMB 705/tonne, down by 0.21% from the previous session. Spot prices remained unchanged in Qingdao Port (Hellenic Shipping News). The latest inventory survey conducted by SMM showed a total of 106.95 million tonnes of iron ore stocks across China’s ten major ports, up marginally by 360,000 tonnes week-on-week. Fine concentrate prices remain firm while fines prices have held steady due to elevated inventory levels and subdued demand.

On August 14th, the DCE most-active contract I2701 saw a firm settlement at RMB 710.5/mt, up by 0.42% from the previous session (Hellenic Shipping News). Meanwhile, spot prices in Qingdao Port increased by RMB 5-9/mt compared to the prior trading day. Despite traders showing higher activity, mill inquiries were limited, resulting in moderate overall spot transaction volumes.

The latest inventory data from SMM indicated a total of 146.78 million tonnes of iron ore inventories across China’s 35 major ports, up by 390,000 tonnes week-on-week (Hellenic Shipping News). Average daily port outbound volumes decreased marginally to 3.088 million mt. Blast furnace operating rates have shown a slight decline, with the sample mills’ daily average hot metal output decreasing by 5,300 mt compared to the previous week.

Market Dynamics and Outlook

The market sentiment remains cautious as most participants await further confirmation of direction (Hellenic Shipping News). With limited upside and downside in iron ore prices, the near-term outlook suggests a narrow trading range. The overall market is heavily dependent on news-driven catalysts due to weak demand support and fluctuating supply conditions.

The continued focus on long-term contract negotiations with mines and the cautious stance of major traders indicate that the market will remain volatile as it awaits clearer signals from downstream industries (Hellenic Shipping News).