- Fed outlook, muted China stimulus drag market sentiment
- High port stocks, slower steel demand weigh on prices
Iron ore fines (Fe 61%) spot prices plunged by $2.25/dmt d-o-d to $95.05/dmt CFR North China on 30 July 2026, targeting a fresh low.
Trading activity remained focused on medium-grade mainstream fines, while sentiment weakened after the US Federal Reserve kept interest rates unchanged but signalled a tighter monetary policy stance, reinforcing expectations of a September rate hike. Meanwhile, the Politburo meeting fell short of announcing stronger stimulus measures, further weighing on ferrous market sentiment.
As per reports, weak macro cues were compounded by deteriorating steel fundamentals. Softer finished steel prices and expectations of slower downstream demand kept mills cautious, limiting spot procurement.
As of now, imported iron ore supply continues to outpace mill consumption, while port inventories remain high. At the same time, steel output has moderated and finished steel stocks are building up, indicating weaker near-term demand for iron ore.
In the raw materials segment, seaborne coking coal trading also remained subdued, with buyers adopting a wait-and-watch approach towards forward-loading cargoes amid persistent uncertainty in the steel market.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 dropped by RMB 16.5/t d-o-d to RMB 718.5/t on 31 July.
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