Typhoon Expectations Tighten Iron Ore Supply, Driving Up Prices [SMM Iron Ore Daily Brief]

Published: Aug 21, 2026 17:17

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Today, iron ore futures moved steadily. The DCE most-traded I2701 contract closed at 707.5 yuan/mt, up 0.21% from the previous trading day. Spot prices at Qingdao port rose by 1-4 yuan/mt, with traders mostly following the market and steel mills purchasing as needed; overall spot trading volume was moderate.

This week, significant changes occurred on both supply and demand sides of iron ore. The latest statistics showed that total iron ore inventory at 35 main ports nationwide stood at 145.54 million mt, down 1.24 million mt WoW, pulling back slightly overal; daily average port pick-up volume rose by 48,000 mt to 3.136 million mt WoW. Next week, a typhoon is expected to make landfal, which may disrupt iron ore port arrivals, with the temporary contraction on the supply side expected to support iron ore prices. Additionally, expectations of coke price hikes are rising, while steel prices face upward resistance and steel mill profits are generaly under pressure, which may curb the upside room for iron ore prices. On balance, lacking further news catalysts, iron ore prices are expected to move sideways in the short term.[SMM Steel]

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