- Stagnant futures, cautious mill buying limit price gains
- Tight mill margins encourage buyers to remain cost-conscious
Iron ore fines (Fe 61%) spot prices held steady at $97/dmt CFR China on 21 September 2026, unchanged from 18 September. Prices found support from increased seaborne buying as Chinese steelmakers continued stocking up ahead of the October Golden Week holiday. However, weak futures, subdued portside activity and cautious mill procurement capped further gains.
Seaborne trading activity improved as mills stepped up purchases ahead of the holiday period, lending some support to the physical market. However, transaction volumes remained limited, with market participants reporting low bids amid sufficient availability of cargoes. Increased selling interest in the secondary market also kept a lid on prices.
Iron ore inventories at Chinese ports rose for the fourth consecutive day, indicating that supply remains relatively comfortable even as restocking continues. Although higher finished steel prices provided some support to market sentiment, production curbs at steel mills have weighed on iron ore consumption. With several mills having already completed their restocking, portside spot activity remained muted despite continued inquiries.
Demand for premium-grade products also remained subdued as tight mill margins encouraged buyers to remain cost-conscious. Lump demand was particularly weak amid rising port inventories and limited mill interest. Overall, pre-holiday procurement provided near-term support to prices, while ample supply, limited inventory drawdowns and cautious buying restricted the upside.
DCE iron ore futures remain under pressure
January 2027 iron ore futures on the Dalian Commodity Exchange (DCE) rose by RMB 1/tonne (t) ($0.2/t) to RMB 716/t ($106.9/t) on 21 September, from RMB 715/t ($106.7/t) on 18 September. The marginal gain had limited impact on the broader market outlook, which remained cautious amid production-cut expectations and uncertainty over inventory replenishment beyond the holiday restocking cycle.