China: Iron ore fines prices rise by over $1/dmt on supply disruption fears
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- Workers’ strike at Australia’s Port Hedland may disrupt supply
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- Need-based mill procurement continues, capping price gains
Iron ore fines (Fe 61%) spot prices gained $1.15/dmt d-o-d to $99.1/dmt CFR China on 8 July 2026, tracking gains in Dalian iron ore futures as renewed geopolitical tensions in the Middle East and concerns over potential supply disruptions from Australia lifted market sentiment. However, subdued physical trading and lower steel output in China continued to cap further gains.
Trading remained relatively thin, with transactions largely concentrated in mainstream medium-grade fines. Seaborne trading activity eased from the previous session, while a modest improvement in portside transactions was insufficient to lift overall buying interest. Mills continued to procure on a need-based basis.
Supply-side concerns also supported prices after workers at Port Hedland, Australia’s largest iron ore export terminal, threatened industrial action (with a strike), raising the risk of short-term shipment disruptions. The supply risk, coupled with higher expected freight costs following renewed Middle East tensions, lifted sentiment in both the futures and spot markets.
Despite the supply-side risks, demand fundamentals remained weak. Lower steel output in China and subdued downstream steel demand continued to weigh on iron ore consumption, keeping buyers cautious in the physical market.
DCE iron ore futures: Iron ore futures on the Dalian Commodity Exchange (DCE) for the September 2026 contract climbed to RMB 747/t on 9 July, aiding the rise in freight costs and stronger market sentiment despite weaker steel production in China.
