- DCE futures decline by RMB 10/t ($1.5/t)
- Higher coke tags limit iron ore gains
Iron ore fines (Fe 61%) spot prices declined by $2.25/dmt d-o-d to $101.1/dmt CFR China on 4 June 2026 against 3 June.
Market sentiment remained weak as elevated coke prices continued squeezing steel mill margins, limiting raw material procurement. Meanwhile, miners accelerated cargo shipments ahead of the Australian financial year-end, while traders actively offloaded inventories in a declining market, adding pressure on prices.
The downturn also reflected weakening steel demand expectations in China. As per reports, steel consumption remained subdued as the country gradually entered the traditional construction off-season, slowing procurement from the real estate and infrastructure sectors and weakening buying interest for iron ore.
Additional pressure came from expectations of higher iron ore supply. Rising exports from Guinea’s Simandou project, where shipments increased sharply in May, nearly six months after the first cargoes were shipped to China. The project is expected to become a major new source of high-grade iron ore, reinforcing concerns over a looser global supply-demand balance in the coming months.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract dipped by RMB 10/t ($1.5/t) d-o-d to RMB 763.5/t ($112/t) on 5 June.
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