- Elevated portside stocks weigh on prices
- High coke prices narrow mills’ margins
Iron ore fines (Fe 61%) spot prices edged down by $0.7/dmt d-o-d to $104.7/dmt CFR China on 2 June 2026 against 1 June. The seaborne iron ore market remained under pressure, with prices declining as rising inventories at Chinese ports continued to dampen demand for imported cargoes.
Substantial stockpiles at major ports in Shandong and Tangshan reduced traders’ appetite for additional seaborne purchases. Weak import margins and lower turnaround rates further discouraged buying activity.
As per reports, sentiment has also been weighed down by expectations of further price declines. In addition, the proposed fifth round of domestic coke price increases is expected to further squeeze steel mill margins, limiting support for higher-grade iron ore products. Despite this, certain concentrate and pellet feed materials continue to offer attractive cost-efficiency for steelmakers.
In contrast, China’s portside iron ore market showed signs of recovery, with prices edging higher amid active trading of medium- and low-grade fines.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract were stable d-o-d at RMB 783.5/t ($115/t) on 29 May.
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