[SMM Iron Ore] Softer spot prices narrow import margins as contract talks weigh on buying

Published: Sep 10, 2026 10:30

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The average imported iron ore margin narrowed from 6.22 yuan/mt to 4.02 yuan/mt this period, mainly dragged down by falling spot prices.
SMM survey data showed China's blast furnace operating rate at 89.08%, down 0.48 percentage point week-on-week, while average daily pig iron output slipped by 5,200 mt to 2.4028 million mt. Mills that have been running at a loss are progressively entering maintenance, weighing on iron ore prices from the fundamentals side.
On the news front, progress in long-term contract negotiations has fuelled expectations of lower import prices ahead. That sentiment has fed through to the spot market, leaving mills broadly reluctant to buy at prevailing levels and pushing procurement demand lower, which continues to pressure prices. Iron ore prices look set to shift into a softer, range-bound pattern in the near term, with imported margins tracking spot lower and likely to narrow further.

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