- Seasonal slowdown caps aggressive gains
- Supply apprehension props up medium-grade fines
Iron ore fines (Fe 61%) spot prices strengthened by $0.9/dmt to $98.4/dmt CFR China d-o-d on 2 July 2026.
The seaborne iron ore market edged up despite limited trading activity, supported by improving sentiment in the medium-grade segment amid concerns over potential restrictions on certain Fortescue products.
Market sentiment received support from the ongoing contractual negotiations between the major Australian miner and state-owned buyer China Mineral Resources Group (CMRG), which created uncertainty around the availability of select medium-grade cargoes. As a result, prices at Chinese ports rebounded across most grades, while low-grade ores continued to remain under pressure due to weak demand fundamentals.
China’s efforts to tighten control over iron ore procurement have reportedly widened to another major Australian supplier, with miners becoming involved in a pricing dispute with CMRG.
Although no official clarification has emerged so far, the development has added uncertainty to the market and kept participants cautious. The settlement timeline of the negotiations remains unclear, with traders closely monitoring further developments for direction on medium-grade iron ore flows and pricing.
Overall fundamentals remained soft, highlighting the seasonal slow offtake.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract dipped by RMB 12.5/t ($2/t) to RMB 737/t ($109/t) on 3 July.
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