China: Iron ore spot prices remain subdued at $95/t as buying weakens

• Brazilian freight costs weigh on low-grade fines competitiveness
• Thin pre-holiday trading keeps Chinese buyers cautious

Iron ore fines (Fe 61%) spot prices remained weak at $95/dmt CFR China on 23 September 2026 against 22 September, unchanged from the previous day, as market activity remained muted.

Sentiment remained subdued amid unverified market reports suggesting that elevated freight costs could potentially disrupt shipments of low-grade iron ore fines from Brazil. However, no actual shipment stoppages have been confirmed so far, limiting the immediate impact on the physical market. Nevertheless, higher freight expenses have made Brazilian low-grade fines less competitive in the delivered market, particularly for price-sensitive buyers. This could gradually shift some buying interest towards medium-grade material, offering limited support to the segment if freight costs remain elevated.

China’s iron ore port stock prices were broadly stable day over day, although trading activity remained thin ahead of the upcoming public holidays. Market participation has slowed as both buyers and sellers adopted a more cautious approach in the run-up to the holiday period. Sellers generally remain unwilling to reduce their price expectations and are not under significant pressure to liquidate stocks, while buyers are showing limited urgency to replenish inventories at current levels. With port availability still appearing comfortable relative to near-term demand, most buyers are preferring to remain on the sidelines and closely monitor price movements before committing to fresh purchases.

DCE iron ore futures remains weak

January 2027 iron ore futures on the Dalian Commodity Exchange (DCE) edged down by RMB 3/t ($0.45/t) to RMB 712.5/t ($106.7/t) on 23 September, compared to RMB 715.5/t ($106.6/t) on 22 September.

The decline was driven by cautious market sentiment amid weak spot demand, with Chinese steelmakers largely completing pre-holiday restocking and remaining selective on fresh iron ore purchases.