- Iron ore prices remain stable as portside trading improves
- Weak downstream demand and comfortable inventories cap upside
Iron ore fines (Fe 61%) spot prices remained largely firm d-o-d at $95.6/dmt CFR North China on 12 August 2026, following the cool-off post the sudden rebound.
The recent rebound in iron ore prices has started to lose momentum, with the market seeing some correction as futures eased from their recent highs. However, slightly better portside trading activity helped limit the downside.
The earlier recovery was driven by improved sentiment across the ferrous complex, particularly following a sharp rise in coking coal prices. However, underlying demand remains weak, keeping the market cautious.
On the demand side, heavy rainfall across several regions continued to disrupt construction activity, weighing on finished steel consumption and limiting mills’ appetite for raw materials. End-user demand remained subdued and was largely focused on discounted products. Comfortable port inventories also reduced the urgency to replenish stocks.
Physical trading activity, however, showed some improvement. Higher portside trading volumes provided some support to prices, partly offsetting weaker seaborne activity. Import margins for Australian fines remained favourable, while expectations of tighter medium-grade supply and a slight improvement in mill margins offered additional support.
Despite logistical disruptions in Tangshan due to heavy rains, buyers remained largely cautious and preferred to wait for clearer market signals. Significant price recovery appears unlikely in the near term, as there has been little improvement in the underlying fundamentals and port inventories remain comfortable.
DCE iron ore futures:
September 2026 iron ore futures on the Dalian Commodity Exchange (DCE) remained largely rangebound d-o-d at RMB 725.5/t on 13 August, reflecting continued caution in the market.
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