Core Viewpoint - The iron ore market is experiencing fluctuations in prices and demand, with a notable increase in global shipments and a slight rise in port inventories, while steel mill profits remain high, influencing raw material support [7]. Spot Market - As of August 18, the spot prices for mainstream iron ore fines are: Rizhao Port PB fines at 770.0 CNY/ton and lump ore at 875.0 CNY/ton [1]. Futures Market - The iron ore near-month 2509 contract closed at 790.0 CNY/ton, down 2.0 CNY (-0.25%), while the main contract 2601 closed at 772.0 CNY, down 4.0 CNY (-0.52%) [2]. Basis - The optimal delivery products are lump ore. The costs for lump ore, PB fines, blended fines, and Jinbuba warehouse receipts are 794.5 CNY/ton, 816.2 CNY/ton, 830.9 CNY/ton, and 828.4 CNY/ton respectively. The basis for the 09 contract for lump ore, PB fines, blended fines, and Jinbuba are 22.5 CNY/ton, 44.2 CNY/ton, 58.9 CNY/ton, and 56.4 CNY/ton respectively [3]. Demand - The average daily pig iron production is 2.4066 million tons, up by 0.34 million tons month-on-month; the blast furnace operating rate is 83.59%, down by 0.16%; the capacity utilization rate for blast furnace ironmaking is 90.22%, up by 0.13%; and the profit margin for steel mills is 65.80%, down by 2.60% [4]. Supply - Global shipments have increased, while the arrival volume at ports has decreased. Global shipments totaled 34.066 million tons, up by 3.599 million tons month-on-month. The arrival volume at 45 ports is 23.819 million tons, down by 1.259 million tons. The national monthly import volume is 105.948 million tons, up by 7.82 million tons month-on-month [5]. Inventory - Port inventories have slightly increased, with the average daily dispatch volume rising month-on-month. The inventory at 45 ports is 138.564 million tons, up by 371,300 tons; the average daily dispatch volume is 3.3467 million tons, up by 128,200 tons; and the steel mills' imported ore inventory is 91.3634 million tons, up by 1.23 million tons [6]. Market Outlook - The iron ore 2601 contract has shown a downward trend. The increase in global shipments and the decrease in port arrivals suggest a potential recovery in future arrivals. Despite a slight decline in steel production, it remains at a relatively high level. The market is expected to see a slight decrease in iron water production in August due to production limits in Hebei, with an average expected to remain around 2.36 million tons per day. The strategy suggests a short position on rallies due to seasonal demand weakness [7].