China: Iron ore spot prices fall by over $1/t d-o-d as fundamentals weaken

• DCE futures decline by RMB 10/t ($1.5/t) d-o-d
  
  
• High inventories weigh on market sentiment
  
  

Iron ore fines (Fe 61%) spot prices declined by $1.35/dmt d-o-d to $103.35/dmt CFR China on 3 June 2026 against 2 June.

The downturn was mainly attributed to the market's renewed focus on weak underlying demand fundamentals after sentiment in the ferrous segment had remained temporarily supported by developments in the coking coal market.

With the impact of coal-related supply concerns gradually fading, market attention shifted back to softer steel demand expectations in China. Continuous rainfall across the southern parts of the country has disrupted construction activity in the real estate and infrastructure sectors, dampening steel consumption prospects for the coming weeks. This subsequently weakened sentiment in the iron ore market.

As per reports, while current trade levels in the seaborne iron ore market are still considered workable, persistently high inventories continue to pressure overall market confidence. Participants remained cautious over future demand recovery, particularly amid concerns surrounding weaker import margins and slowing downstream steel activity.

DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract dipped by RMB 10/t ($1.5/t) d-o-d to RMB 773.5/t ($114/t) on 4 June.