China: Spot iron ore prices extend gains on firmer portside sentiment

Iron ore fines (Fe 61%) spot prices climbed up by $0.85/dmt d-o-d to $98.6/dmt CFR China on 28 August 2026, as strengthening sentiment in the ferrous market and better interest in medium-grade fines supported prices.

The iron ore market closed the week with a more constructive tone, as improving portside conditions in China provided additional support to seaborne cargoes. Although overall transaction volumes remained subdued, stronger prices in the domestic port market improved the economics of imported material in Northern China, contributing to a more positive market outlook.

Despite the recent upward movement, concerns over the strength of the underlying market persisted. Mills remained cautious about the durability of the rally, as steel demand has yet to show a convincing improvement. At the same time, rising input costs continued to erode mill profitability, limiting their ability to support further increases in iron ore prices.

Further pressure could emerge from another anticipated increase in coke prices in China. Cumulative impact of successive coke price hikes could make certain grades of iron ore less attractive to steelmakers. High-silica material, particularly some Brazilian-origin cargoes, could face greater selling pressure, with several cargoes reportedly struggling to find buyers even after offers were reduced.

Inventory holders at ports were generally unwilling to offer material aggressively, expecting additional gains, whereas buyers became more reluctant to chase the market at higher levels. Steel mills largely maintained a hand-to-mouth procurement strategy as profitability concerns continued to restrict bulk restocking activity.

Overall, the latest increase appears to be more closely linked to improving market sentiment and gains in the portside market than to a significant strengthening in physical consumption.