China: Iron ore spot prices gain amid supply concerns

• Blending fines offered at higher discount
  
  
• Spot cargo availability concerns support market
  
  

Iron ore fines (Fe 61%) spot prices rebounded by $1.6/dmt to $98.45/dmt CFR China on 24 June 2026. Market activity gradually resumed following the Dragon Boat Festival holidays, supported by a recovery in domestic Chinese iron ore values and higher domestic coke prices. Trading activity also picked up in the seaborne market.

Blending fines are being offered at higher discounts in the secondary market now due to higher phosphorous content, further relaxing the market transections level.

Market sentiment improved as iron ore prices staged a technical rebound after a prolonged period of decline. With prices falling to their lowest levels in nearly a year, buyers stepped in to take advantage of lower levels, lending support to the market.

Sentiment was further supported by market rumours regarding possible procurement restrictions on certain branded iron ore cargoes in China.

As per reports, steel mills may face restrictions on directly issuing LC and participating in spot tenders for several products, while existing long-term contracts are expected to remain unaffected. Although reports remain unconfirmed, concerns over tighter availability of spot cargoes helped lift market sentiment.

However, the outlook for blended iron ore products remained weak, with trading activity continuing to be subdued. At the same time, several market participants were seen hedging their positions, which supported physical market prices despite steel demand remaining affected by seasonal factors.

DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract stood at RMB 746.5/t ($110/t) on 25 June.