- Iron ore prices edge higher amid supply-side uncertainty
- Weak buying momentum keeps market stance cautious
Iron ore fines (Fe 61%) spot prices edged up by $0.75/dmt d-o-d to $96.05/dmt CFR North China on 18 August 2026. The uptick was supported by continued uncertainty around Australian supply, although the market remained largely cautious as buyers assessed the sustainability of the recent price rise.
Attention remained on the ongoing term contract discussions between China Mineral Resources Group (CMRG) and major Australian miners. Meanwhile, uncertainty around labour negotiations at Port Hedland also continued to influence market sentiment.
The rise in prices, however, did not translate into stronger spot buying. Most mills have already covered their immediate requirements, reducing the need for additional purchases in the near term. As per reports, buyers were reluctant to chase higher prices and were instead waiting for a clearer price direction.
Higher coke costs are also becoming a concern for mills. With coke prices expected to increase, procurement decisions for iron ore have become more price-sensitive. Chinese portside iron ore prices moved higher, but trading remained measured.
On the supply side, sellers were also taking a cautious approach. Limited fresh inquiries were heard, while the high-grade ore remains relatively less competitive because of its weaker cost-performance ratio. Mills viewed current offers as reasonable, although the discount on fines was considered insufficient to make up for the premium on lump.
DCE iron ore futures: October 2026 iron ore futures on the Dalian Commodity Exchange (DCE) rose by RMB 6/t to RMB 728.5/t on 19 August, indicating slightly firmer near-term sentiment.
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