- Iron ore spot prices fall below $100/dmt amid weaker Chinese buying
- Futures correction and weak steel mill margins weigh on sentiment
Iron ore fines (Fe 61%) spot prices declined by $2/dmt d-o-d to $99/dmt CFR China on 9 September 2026, falling below the $100/dmt mark after the recent recovery. The correction was mainly driven by weaker iron ore futures following the previous day’s gains.
Futures came under sharp pressure around day-half, while market chatter later emerged that Australian miner had reached an agreement with China Mineral Resources Group (CMRG), although details remained unclear. Weaker physical procurement in China and concerns over steel mill profitability also weighed on prices, while higher energy and commodity costs limited the downside.
Physical buying weakened on 9 September, with seaborne activity declining noticeably and portside trading volumes also edging lower. Buyers appeared more cautious following the recent price increase, adding pressure to the physical benchmark.
Steel market concerns remained another drag on sentiment. End-user demand continued to recover slowly, while weaker mill profitability raised concerns over potential production cuts and lower iron ore consumption. China’s August CPI rose 0.8% y-o-y, but the increase was largely linked to seasonal food and higher energy costs, offering limited relief on consumption concerns.
Subdued construction activity during the hot and rainy summer period also continued to weigh on steel demand. With buying activity slowing and mills facing margin pressure, market participants are likely to remain cautious in the near term.
DCE iron ore futures remain positive
January 2027 iron ore futures on the Dalian Commodity Exchange (DCE) decreased by RMB 8/tonne (t) ($1/t) to RMB 731.5/t ($109/t) on 9 September. The weakness in futures market added to the cautious seaborne buying and uncertainty around upcoming cargoes continued to temper market confidence.
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