- Crude oil slump weighs on broader commodity sentiment
- Policy expectations support seaborne trading activity
Iron ore fines (Fe 61%) spot prices edged down by $0.4/dmt to $97.10/dmt CFR North China on 27 July 2026, as weaker commodity sentiment following a sharp decline in crude oil prices and lower steel production in China weighed on the market. However, expectations of fresh policy support from Beijing helped limit the downside.
Prices came under pressure as easing geopolitical tensions between the US and Iran triggered a sharp decline in crude oil prices, weakening cost-side support across the commodity complex. At the same time, seasonal weakness in steel demand and maintenance-related production cuts at Chinese mills reduced iron ore procurement, keeping spot buying subdued.
Sentiment remained cautious ahead of this week’s US Federal Reserve policy meeting, with expectations of prolonged tight monetary policy weighing on commodity markets.
However, downside was capped by hopes of fresh economic stimulus from China’s upcoming Politburo meeting. The recent price correction revived seaborne buying interest, particularly for blend fines, as some mills substituted lower-grade fines amid favourable price differentials. Attractive discounts for medium-grade fines also supported transactions, even as portside trading stayed relatively muted.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract weakened d-o-d to RMB 740/t on 28 July.
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