- Higher Australian ore supply put pressure
- Mills monitoring coking coal, coke prices
Iron ore fines (Fe 61%) spot prices fell by $1.7/dmt d-o-d to $105.1/dmt CFR China on 26 May against $107.25/dmt on 25 May 2026. Prices dropped as additional cargoes of low-grade Australian fines entered the Chinese portside market, weighing on sentiment despite expectations of firm steel production in China. Inventories of low-grade iron ore remained elevated, with abundant Indian fines cargoes and unsold Australian low-grade materials continuing to pressure the market.
As per reports, Chinese mills are closely monitoring developments in the coking coal and coke markets. Recent supply concerns following the Liushenyu coal mine accident and a fourth round of coke price hikes have increased raw material costs for steelmakers. Higher coal and coke costs could narrow steel margins and reduce mills’ appetite for iron ore purchases.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract fell by RMB 2.5/t ($1/t) to RMB 781.5/t ($115/t) on 27 May against 26 May.
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