- Typhoon-related logistics disruptions support portside prices
- Expectations of improved mill activity in Sep-Oct boost outlook
Iron ore fines (Fe 61%) spot prices edged down by $0.2/dmt d-o-d to $95.45/dmt CFR North China on 21 August 2026, as demand for medium-grade fines remained subdued through the week. High port stocks reduced the urgency to replenish inventories, while rising coke costs have further pressured mill margins. Buyers therefore remained price-sensitive, with limited appetite to chase higher-priced cargoes.
However, many mills maintained a cautiously bullish outlook for the coming months. Expectations of improved mill activity in September and October, along with relatively limited availability of low-grade fines, could support demand for medium-grade material and provide some downside protection to prices.
At Chinese ports, prices remained largely stable as typhoon-related logistics disruptions continued to affect cargo movements. Vessel delays and an uncleared backlog constrained physical flows, while traders were reluctant to sell at losses, helping keep offers firm despite weak demand.
Meanwhile, gains in coal prices supported the broader ferrous complex but also added to steelmakers’ cost pressures, limiting the upside potential for iron ore.
Overall, the near-term outlook remains balanced. High inventories and elevated coke costs are likely to cap buying interest, while ongoing logistics disruptions and expectations of stronger mill activity in September could limit downside risks. Price direction will largely depend on the pace of logistics normalisation and any recovery in mill procurement.
DCE iron ore futures: October 2026 iron ore futures on the Dalian Commodity Exchange (DCE) remained largely range-bound at RMB 722.5/t on 21 August, indicating no major development ahead.
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