- Iron ore prices inch up amid weak demand
- Dalian futures hold steady amid cautious sentiment
Iron ore fines (Fe 61%) spot prices inched up by $1/dmt d-o-d to $91/dmt CFR North China on 23 October 2026. The marginal recovery indicated limited price support, although buying interest remained cautious amid subdued steel demand and selective procurement by Chinese mills.
Weak steel mill profitability remained a key factor limiting iron ore demand, as squeezed margins and lower end-user consumption discouraged aggressive raw material procurement. Buyers increasingly favoured non-mainstream lump products over mainstream grades, adding further pressure on mainstream lump premiums. The shift in purchasing preferences reflected mills’ cautious approach to raw material costs amid challenging operating conditions.
Market sentiment remained cautious to bearish, as the slight increase in fines prices did not indicate a broad-based recovery in iron ore demand. Weak steel consumption, squeezed mill margins and preference for non-mainstream lump continued to weigh on mainstream premiums, while recent premium declines left some traders facing difficulties covering earlier positions.
Going forward, iron ore prices and lump premiums are likely to remain under pressure unless steel demand and mill profitability improve. Chinese mills’ procurement activity, demand for mainstream lump grades, port inventories and seaborne supply will remain key factors influencing near-term market movements.
DCE iron ore futures ease on cautious market sentiment
The January 2027 iron ore futures contract on the Dalian Commodity Exchange (DCE) remained unchanged d-o-d at RMB 670/t ($100/t) on 23 October 2026, following a decline in the previous session. Market sentiment remained cautious amid weak steel demand, squeezed mill profitability and selective procurement by Chinese steelmakers, limiting the potential for a near-term recovery.
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