- Mills procure selectively amid weak steel demand, low profitability
- Dalian futures edge higher despite weak demand, market uncertainty
Iron ore fines (Fe 61%) spot prices remained unchanged d-o-d at $91/dmt CFR North China on 20 October 2026, as market participants maintained a cautious stance amid subdued steel demand and selective procurement by Chinese mills. Buying interest remained limited, with steelmakers focusing on immediate requirements rather than building inventories.
Market sentiment continued to be weighed down by weak downstream steel demand and concerns over mill profitability, limiting the scope for a sustained price recovery. Meanwhile, buyers remained watchful of changes in steel production and raw material procurement trends following the Golden Week holiday.
Going forward, iron ore prices are likely to remain under pressure unless steel demand improves and Chinese mills step up procurement. Port inventory levels, steel margins, and developments in seaborne supply are expected to remain key factors influencing near-term price movements.
Dalian iron ore futures edge higher despite cautious sentiment
The January 2027 iron ore futures contract on the Dalian Commodity Exchange (DCE) increased marginally by RMB 1.5/t ($0.22/t) d-o-d to RMB 681/t ($102/t) on 20 October 2026. Futures prices remained largely stable, as subdued steel mill profitability, weak spot demand and persistent market uncertainty continued to weigh on upward momentum.
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