- Iron ore downward by weak steel fundamentals
- Narrowing mill margins amid coke price revision
Iron ore fines (Fe 61%) spot prices dropped by $2.10/dmt to $99.25/dmt CFR China on 18 June 2026 d-o-d against 17 June.
Prices lost strength amid growing pressure from weak steel demand and shrinking mill margins in China. The decline was mainly linked to continued weakness in China’s steel sector, which is currently in its seasonal off-season period. Heavy rainfall across southern China disrupted construction activity and slowed finished steel consumption, reducing demand for raw materials. Moreover, chances of a near-term recovery in steel demand remain low, keeping iron ore sentiment weak.
Additional pressure came from the recent seventh round of coke price hikes, which further squeezed already tight mill margins. At the same time, lower oil prices weakened freight cost support, adding to the downside pressure in the seaborne iron ore market.
Many steel mills continued operating at near break-even levels or at losses, prompting cautious raw material procurement and continued pressure on iron ore prices. Despite some buying interest at lower price levels, abundant portside inventories and rising shipments from suppliers outside Australia and Brazil continued to pressure the market, capping any meaningful recovery in prices.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract weakened by RMB 12/t ($2/t) to RMB 747.5/t ($110/t) on 18 June.
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