- Port operations disruption fueled gain in futures
- Easing coking coal tags, lent support to iron ore
Iron ore fines (Fe 61%) spot prices gained $0.6/dmt d-o-d to $99.05/dmt CFR China on 10 July 2026, driven by mounting concerns over potential supply disruptions from Australia and improved sentiment following a decline in coking coal prices. Despite the uptick, spot trading remained subdued as market participants continued to assess the weak steel demand outlook.
The price gain was largely underpinned by rising supply-side concerns after reports emerged that hundreds of workers at Port Hedland iron ore operations in Western Australia may undertake industrial action next week. The possibility of disruptions at one of the world’s largest iron ore export hubs fuelled expectations of tighter near-term seaborne availability.
Market sentiment also received support from a sharp fall in coking coal futures on Friday amid weaker-than-anticipated demand. The decline in raw material costs offered some respite to Chinese steelmakers by easing production cost pressures, thereby improving their appetite for iron ore purchases.
However, the overall operating environment for steel mills remained challenging. Margins continued to stay under strain due to sluggish steel demand, prompting several mills to maintain production cuts despite the improvement in input costs.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract edged up marginally to RMB 750/t on 11 July, aiding the rise in freight costs.
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