China: Iron ore spot prices edge down d-o-d as mills remain cautious

Mills largely remained cautious, closely monitoring developments from the ongoing US-China discussions in Beijing for cues on futures market direction, while discounts stayed limited. The recent price decline was mainly considered a technical correction after the sharp post-Labour Day rally across the ferrous complex.

In the high-grade segment, sentiment stayed relatively firm, supported by healthy steelmaker margins and expectations of stronger domestic coke and concentrate prices. Meanwhile, China’s portside iron ore prices softened before recovering slightly on the back of encouraging steel production data. Ongoing inventory drawdowns at ports and steady demand also supported sentiment, pushing mills to increase fines usage for better cost competitiveness.