- Lower prices prompt mills to replenish inventories
- Tight lump availability continues to support prices
Iron ore fines (Fe 61%) spot prices edged down by $0.5/dmt d-o-d to $95.3/dmt CFR North China on 17 August 2026, as concerns over the supply outlook continued to keep buyers cautious. However, improved seaborne margins have brought some buying interest back, although mills remain focused on cost-effectiveness.
Sentiment towards Brazilian Blend Fines remained weak as steel mills continued to face tight margins. Meanwhile, China’s portside iron ore prices declined on 17 August, encouraging mills to step up purchases and replenish inventories at lower levels.
Overall buying activity has improved after the price decline, with several mills returning to the market for restocking. Despite the weaker prices, demand remained relatively firm as mills looked to cover immediate requirements. Persistently low portside lump inventories, along with decent import margins, has continued to support lump prices.
DCE iron ore futures: October 2026 iron ore futures on the Dalian Commodity Exchange (DCE) remained largely rangebound at RMB 722.5/t on 18 August, reflecting continued market cautiousness.
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