Iron ore slides for a second session as Chinese mill margins and Mideast risk weigh on demand outlook

Published: Jul 22, 2026 15:08

Save

Iron ore futures fell for a second consecutive day on 21 July as deteriorating profitability at Chinese steel mills and continued US–Iran tensions clouded the demand picture. Singapore futures dropped as much as 1.6% to a near two-week low, while the most-active Dalian contract fell as much as 2.2% intraday before the I2609 contract closed at 749 yuan/mt. Benchmark 62% Fe delivered to China held just under $100/t, with recent closes near $98.88/t, keeping prices inside the $90–110/t band that has prevailed through 2026. Spot prices at Qingdao port eased 5–12 yuan/mt on the day, and trader quoting activity and mill purchasing willingness were both described as mediocre. Blast-furnace maintenance is expected to further trim near-term hot-metal demand. The move underscores how ex-China producer economics remain tethered to Chinese steel margins even as seaborne supply grows

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

Itochu and BHP Greenlight Ministers North Iron Ore Mine

Itochu, BHP Group, and Mitsui have reached a final investment decision to construct the Ministers North iron ore deposit in Western Australia. The joint venture, owned 85% by BHP, 8% by Itochu, and 7% by Mitsui, targets an annual output capacity of 20 million tonnes. Production is scheduled to begin in the second half of 2028, utilizing existing infrastructure from the nearby Yandi mine to replace its depleting reserves.

1 hour ago

Thyssenkrupp Reduces Blast Furnace Output Amid Low Rhine Water Levels

Thyssenkrupp Steel announced that it has slightly reduced blast furnace production at its Duisburg steelworks due to critically low water levels on the Rhine River. The severe weather conditions have constrained the inflow of raw materials, forcing the steelmaker to suspend its own barge operations and charter alternative vessels with a shallower draught. The Rhine logistics disruption has led to increased freight costs across the German industrial sector, although Thyssenkrupp noted that customer deliveries are not currently at risk.

1 hour ago

BHP Workers Stage Historic Strike at Port Hedland Over Pay Parity

Workers at BHP's Port Hedland iron ore facility in Western Australia launched an eight-hour strike in mid-July, marking the first industrial action in the Pilbara region in over 25 years. The strike, driven by demands for pay parity and improved working conditions, involved up to 200 workers, with market participants estimating it could potentially impact iron ore shipments by 2 million tonnes. By July 21, 2026, BHP and the union representing the workers reported they were close to reaching a formal agreement to resolve the dispute.

1 hour ago