China: Iron ore spot prices decline as market slows down
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- Weak steel sector sentiment pressures iron ore
- Mid-grade fines trading activity continues
Iron ore fines (Fe 61%) spot prices fell by $1.45/dmt d-o-d to $105.8/dmt CFR China on 21 May against $107.25/dmt on 20 May 2026.
The downturn was primarily driven by persistent pressure in the steel sector. Chinas ferrous segment weakened further as optimism surrounding the once-supportive steel export market continued to diminish. At the same time, the arrival of the rainy season in southern China clouded demand prospects, while growing inventories at steel mills exerted additional downward pressure on prices.
Muted sentiment in the billet and flat steel markets further weighed on the overall trend, prompting sellers to cut offers aggressively to attract buyers. Meanwhile, trading activity remained moderate, with portside transactions continuing at a healthy pace. Buyers kept restocking at lower price levels. Some reports mentioned that mills are currently saving import margin due to pressure from steel tags with downward pressure on raw material prices.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract fell by RMB 8.5/t ($1/t) to RMB 791.5/t ($117/t) on 22 May against 21 May.
