[SMM Iron Ore] Higher premiums and softer spot cut imported iron ore margins to 1.10 yuan/mt

Published: Oct 15, 2026 12:02 (GMT+8)

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The average imported iron ore margin narrowed sharply from 8.40 yuan/mt to 1.10 yuan/mt this period, squeezed by higher seaborne premiums on some brands and lower spot prices.

SMM survey data this week showed iron ore demand still weak. The blast furnace operating rate across 242 mills stood at 87.03%, down 1.54 percentage points from before the holiday, while the capacity utilisation rate was 86.81%, down 1.34 percentage points. Average daily hot metal output at sample mills fell 36,200 mt to 2.3520 million mt. Output may recover slightly over the next week or two as maintenance ends and mills restart, but with steel demand showing no clear improvement and mill margins still low, there is little appetite to lift production.

Iron ore prices lack support and are likely to stay soft within a range. Imported margins are now close to breakeven, and could turn negative should premiums climb further or spot prices fall again.

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