China: Iron ore spot prices decline by $1/dmt d-o-d amid soft fundamentals

• Rising steel inventories continue to pressure iron ore prices
  
  
• Medium-grade fines dominate limited spot market trades
  
  

Iron ore fines (Fe 61%) spot prices lowered by $0.9/dmt to $97.55/dmt CFR China on 25 June 2026 amid weakening market sentiment. The correction was driven by deteriorating steel demand and bearish expectations across China's steel sector. Apparent steel consumption, particularly for rebar, softened compared with the previous week, underscoring the ongoing supply-demand imbalance.

Seasonal factors further pressured the market, as persistent rainfall in southern China and intense heatwaves in northern regions disrupted construction activity and slowed downstream procurement. Consequently, physical iron ore trading activity remained limited, largely focused on mainstream medium-grade fines, while overall seaborne transactions declined despite a slight improvement in portside trading.

Lower steel production levels and rising finished steel inventories also weighed on sentiment and prices. Port-stock iron ore prices in China retreated on 25 June after recovering briefly a day earlier. Although overall demand remains relatively stable, weak steel mill margins prompted mills to increase the use of lower-grade fines in blending strategies, while some speculative trading activity among traders persisted.

DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract stood at RMB 734/t ($108/t) on 26 June dropping 12.5/t ($2/t).