- Market remains steady amid softer steel outlook
- Chinese mills increase pellet usage, trim lump purchases
Iron ore fines (Fe 61%) spot prices held firm d-o-d at $100.0/dmt CFR China on 15 July 2026, as supply uncertainity pertained.
Seaborne iron ore prices edged higher despite subdued trading activity, as concerns over freight costs and the possibility of supply disruptions kept sentiment firm. Mills remained watchful after negotiations between major miner and its workers failed to reach an agreement, paving the way for planned strike action. Meanwhile, weaker-than-anticipated Chinese macroeconomic indicators reinforced expectations of further policy stimulus, lending additional support to prices.
Chinese steel mills continued to shift their raw material mix in favour of pellets as elevated coke prices increased the cost of blast furnace operations. With lump premiums remaining high, mills are preferring pellets to improve cost efficiency and maintain margins, while restricting lump purchases to essential requirements and lowering their blending ratios.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract remain unchanged at RMB 759.5/t on 16 July, amid short supply surges.
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