Report Industry Investment Rating - Not provided in the given content Core Viewpoint of the Report - Short - term domestic macro - policies are in a complete vacuum, with weak expectations for domestic incremental policies. The recent decline in carbon element prices has led to the collapse of cost support for finished products, and the overall valuation of the black series has decreased, dragging down the iron ore price. Iron ore trading is currently focused on the strong reality. Although demand has basically peaked, the decline slope is gentle, and the supply is continuously increasing but may still show a year - on - year decrease. It is expected that iron ore will remain relatively strong in the short term but will still be affected by the sector [3][4] Summary According to Relevant Catalogs Market Situation - Recently, iron ore has shown relatively strong performance. While rebar and hot - rolled coils have retraced the rebound caused by the easing of Sino - US tariffs, finished products and coking coal have fallen to new lows. The price reduction of carbon elements has prevented a significant compression of blast furnace steel mill profits due to price drops. Under the strong pressure of Sino - US tariffs, domestic exporters have rushed to export to the US to offset the decline in domestic demand. The 90 - day suspension of 24% reciprocal tariffs has intensified the rush - to - export behavior, and the market has revised its expectations of export decline. Iron ore is currently in a situation of high demand, high discount, and inventory depletion, resulting in relatively strong price performance [3] Supply - The current shipment of foreign iron ore has decreased compared to the previous period. Australian shipments have increased while Brazilian shipments have decreased, and the non - mainstream shipments have declined after a pulse. The overall year - on - year decline in foreign ore shipments is narrowing. June is the peak season for foreign ore shipments, and major mines are expected to maintain a steady increase in shipments, with the marginal support from the supply side weakening [3] Demand - Domestic demand is generally at a high level compared to the same period in history. Pig iron production has declined for two consecutive weeks, with the current level at 243.6 (-1.17) thousand tons, and the decline has widened. Although short - term demand has peaked, the current profitability rate of steel mills is relatively high, and the export outlook has been revised upwards. It is expected that pig iron production will decline from a high level but with a gentle slope, and the short - term impact on prices will be small [4] Inventory - The current domestic demand level is still relatively high. It is expected that the port inventory level will remain relatively stable or tend to decline in early June. However, overall, the inventory is at a high level, and the phased de - stocking at a high inventory level cannot provide upward momentum [4]

Report Summary 1. Report Industry Investment Rating No relevant content provided. 2. Core View of the Report - Short - term domestic macro - policies are in a complete vacuum, and the expectation of incremental policies is weak. The decline of carbon elements causes the cost support of finished products to collapse, and the overall valuation of the black series drags down the iron ore price. Iron ore trading focuses on strong reality in the short term. Although demand has basically peaked with a low decline slope, and supply continues to rise but may remain in year - on - year decline, it is expected to remain relatively strong in the short term [2][3]. 3. Summary by Related Catalogs Logic - Last week, iron ore showed relative strength. The prices of rebar and hot - rolled coils retracted most of the gains from the rebound due to the relaxation of Sino - US tariffs on May 12, and coking coal and coke hit new lows. The decline in carbon element prices allowed blast furnace steel mills to avoid a significant profit compression. Under the strong pressure of Sino - US tariffs, domestic exporters rushed to export to hedge the decline in domestic demand. The 90 - day suspension of 24% reciprocal tariffs strengthened the rush - to - export behavior to the US, and the market revised the expectation of export decline. Iron ore is in a pattern of high demand, high discount, and inventory reduction, showing relative strength [2]. Supply - Last week, the shipment of foreign iron ore rebounded significantly on a week - on - week basis, and the year - on - year decline in overall foreign ore shipments tended to narrow. May is the peak season for foreign ore shipments, and mainstream mines are expected to maintain a steady upward shipment trend, with the marginal support of the supply side weakening [2]. Demand - Domestic demand is at a high level in the same historical period. The molten iron output has declined for two consecutive weeks, with this period at 243.6 (-1.77) and the decline rate expanding. Short - term demand has peaked, but the current profitability of steel mills is high and the export expectation has been revised upwards. It is expected that the molten iron output will decline from a high level with a low downward slope, having a small short - term impact on prices [3]. Inventory - The current domestic demand level is still relatively high. It is expected that the port inventory level will remain relatively stable or tend to decline in early June. However, overall, the inventory is at a high level, and the phased de - stocking at a high inventory level is difficult to provide upward momentum [3]. Strategy - It is recommended to use range - bound operations and the 9 - 1 positive spread strategy. The price range of the i2509 contract is 715 - 745 yuan/ton, and the price range of the foreign FE06 contract is 97 - 101 US dollars/ton [3].