China: Iron ore spot prices drop $1/t d-o-d post Dragon Boat holidays

• Rising inventories of higher silica material pressure prices
  
  
• Trading slows as mills show interest only at lower prices
  
  

Iron ore fines (Fe 61%) spot prices dropped by $1.25/dmt to $97.6/dmt CFR China on 22 June 2026. Iron ore prices continued to soften despite Chinese market participants returning after the Dragon Boat Festival (19-21 June 2026). Trading activity remained thin, with limited transactions reported for mainstream iron ore brands, particularly blend fines.

Market sentiment remained weak as steel mills showed buying interest only at lower price levels. Rising inventories of high-silica products across seaborne and portside markets, especially in the medium-grade segment, continued to pressure prices.

Demand has also shifted away from higher grade Fe, high-silica concentrate products. While concentrates previously benefited from their cost competitiveness, recent coke price increases and an oversupply of similar high-silica materials have reduced their appeal. Buyers are increasingly favoring products such as Minas Rio fines.

Meanwhile, coking coal prices rebounded during the day following reports of increased procurement activity by steelmakers. However, the recovery in coal prices provided little support to the iron ore market, where ample supply and weak demand continued to weigh on sentiment.

DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract weakened by RMB 2.5/t ($1/t) to RMB 740t ($109/t) on 23 June.