- Iron ore prices fall amid weak steel demand
- Ample supply and lower hot metal output weigh on demand
Iron ore fines (Fe 61%) spot prices declined by $1/dmt d-o-d to $93/dmt CFR China on 29 September 2026, their lowest level in over a month, from $94/dmt on 28 September. The market remained under pressure from weak downstream fundamentals ahead of the Chinese Golden Week holidays. Seaborne iron ore prices continued to ease, although trading activity picked up as some market participants looked to take advantage of weakness in derivatives.
The market remained well supplied, keeping buyers cautious despite increased trading interest. Lower hot metal production limited mills’ raw material requirements, while higher arrivals at Chinese ports further weighed on sentiment. Blend fines continued to face relatively stronger pressure amid subdued demand, although narrowing discounts and lower outright prices triggered some bottom-fishing interest, with buying interest for several brands improving marginally.
With the Chinese National Day holiday approaching, mills largely adopted a wait-and-watch approach, limiting fresh purchases amid weak steel demand. Meanwhile, lower shipments from major miners provided some support on the supply side, potentially cushioning further price declines in the near term.
DCE iron ore futures soften
January 2027 iron ore futures on the Dalian Commodity Exchange (DCE) remained largely unchanged at RMB 701.5/t ($104.4/t) on 29 September against Monday. Futures sentiment stayed subdued as weak spot demand and cautious mill procurement continued to weigh on the market ahead of the upcoming holidays.
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