- Australian strike concerns offer limited market support
- Traders suspend offers amid widening portside losses
Iron ore fines (Fe 61%) spot prices dipped by $0.5/dmt d-o-d to $93.2/dmt CFR North China on 4 August 2026, extending the recent downtrend amid subdued physical demand and cautious market sentiment.
Portside trading remained sluggish as mills continued to adjust to lower derivatives. While discounts narrowed slightly from the previous session, traders noted that this was largely a technical correction following the stabilisation of swaps, with the market gradually shifting its focus back to underlying supply-demand fundamentals. Despite the marginal recovery in discounts, weak buying interest and persistent pressure on portside inventories kept overall sentiment subdued.
Chinese portside iron ore prices weakened further as traders struggled to clear cargoes amid mounting losses. As per reports, several suppliers, particularly in Jiangyin, reportedly suspended spot offers as prices fell below acceptable levels, preferring to hold inventories rather than sell at deeper discounts. This temporarily reduced spot liquidity but failed to trigger any meaningful improvement in sentiment, as mills largely maintained a hand-to-mouth procurement strategy.
Meanwhile, concerns over potential supply disruptions from Australia provided limited support to prices. Workers at Port Hedland operations are scheduled to carry out industrial action on 8-9 August, including a 24-hour ban on ship loading followed by a 24-hour work stoppage at the Port Hedland Bulk Export Terminal. However, the industry largely viewed the planned strike as having a limited impact on near-term seaborne supply, given the short duration of the action and expectations that existing inventories and shipment schedules would help cushion any temporary disruption.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 held steady d-o-d at RMB 699.5/t on 4 August.
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