China: Iron ore spot prices edge up d-o-d

• Rising seaborne supply expectations weigh on sentiment
  
  
• Lower pig iron output impacts raw material procurement
  
  

Iron ore fines (Fe 61%) spot prices remained largely stable, edging up by $0.4/dmt d-o-d to $101.5/dmt CFR China on 5 June 2026 against 4 June. Earlier in the week, prices had declined amid weak market sentiments.

Market sentiment remained subdued amid lower pig iron output, expectations of rising seaborne supply, and pressure on steelmaking margins, although improved portside trading activity limited further downside. Weak profitability at Chinese steel mills and the seasonal slowdown in steel demand continued to weigh on raw material procurement and restricted any significant recovery in iron ore prices. Despite the recent price decline, buying interest remained limited as mills maintained a cautious approach.

Meanwhile, as per reports, market participants continued to monitor expectations of higher iron ore availability, particularly from Guinea's Simandou project, which is expected to raise high-grade supply and further boost global supply in the coming months.

DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract gained slightly by RMB 3/t ($0.5/t) d-o-d to RMB 766.5/t ($112.5/t) on 6 June.