- Sudden price hike in earlier sessions reduces buying interest
- Prices may remain supported at around $100/t in near term
Iron ore fines (Fe 61%) spot prices softened by $0.4/dmt to $99.6/dmt CFR China on 16 July 2026 despite several supporting factors.
Seaborne iron ore prices edged down, as buyer sentiment cooled following the sudden hike observed in the previous sessions. However, trading activity remained decent for mainstream iron ore, which remained in tight supply.
On a broader note, multiple bullish factors made market participants believe that prices could remain around the $100/t mark. First, mills are closely monitoring policy announcements and are hoping for a positive outcome from the Politburo meeting, which could help sustain a price uptrend. Secondly, ongoing negotiations over restrictions on certain grades are still leading to uncertainty over supply. Additionally, the port strike at a major export hub has reduced material outflow.
Meanwhile, BHP and Rio Tinto both registered healthy operational gains in the year ended 30 June 2026.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract edged up by RMB 5/t d-o-d to RMB 764.5/t on 17 July.
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