Iron ore futures recorded a modest uptick on Friday, with the most-traded I2701 contract on the Dalian Commodity Exchange (DCE) closing 1.04% higher than the previous session. Concurrently, spot prices at Qingdao port increased by an average of 1 yuan/mt. However, market sentiment in the physical spot market remained largely unenthusiastic.
Traders exhibited only moderate interest in offering iron ore, while steel mills adopted a cautious approach, procuring material strictly on an as-needed basis. This resulted in overall spot trading activity being described as lacklustre.
For freight forwarders and logistics professionals, this indicates a stable but not robust demand for dry bulk shipping, specifically for iron ore. While futures show some positive movement, the subdued spot market suggests that any immediate increase in shipping volumes or rates for iron ore is unlikely. Forwarders should anticipate consistent but not elevated demand on relevant trade lanes, with little pressure for rate increases due to limited speculative buying from mills.
