- Steel mills prefer lower-priced material despite healthy margins
- Expectations of portside price corrections weigh on sentiment
Iron ore fines (Fe 61%) spot prices fell by $0.75/dmt d-o-d to $107.25/dmt CFR China on 20 May against $108.00/dmt on 19 May 2026.
Iron ore prices softened amid cautious market sentiment and expectations of additional correction in portside prices, leading buyers to favour domestic Chinese port purchases over seaborne cargoes.
Despite comfortable mill margins, steel mills and traders continued showing interest in lower-priced materials, including non-mainstream Brazilian fines, amid expectations of further easing in Australian mainstream brands.
Buying activity remained centred on medium-grade fines, while trading activity improved across northern and eastern Chinese ports. Meanwhile, overall market sentiment remained weak due to subdued steel demand expectations, with ongoing rainfall in central and eastern China expected to disrupt construction activity and further weigh on mills’ short-term raw material demand.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract edged down d-o-d by RMB 6.5/t ($0.4/t) to RMB 793.5/t ($117/t) on 21 May.
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