Pessimistic Market Sentiment Drags Down Iron Ore Prices to Continue Hitting Bottom [SMM Brief Comment]

Published: Feb 6, 2026 17:17

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Today, iron ore futures continued to hit bottom, with the most-traded contract I2605 settling at 760.5 yuan/mt, down 1.23% from the previous trading day. Spot prices fell by 5–10 yuan/mt compared to the previous trading day. With futures declining and the weekend approaching, traders were reluctant to offer quotes, and steel mills mostly maintained a wait-and-see stance. Overall market trading activity was sluggish.
Although blast furnace production resumptions at steel mills have driven a rebound in hot metal output, pre-holiday stockpiling by mills has concluded. Coupled with high iron ore inventory levels putting pressure on prices and pessimistic market sentiment, prices continued to decline. This weekend, a cyclone in Australia may impact shipments from major ports such as Hedland, leading to a temporary contraction in supply. However, high inventory levels are unlikely to support prices. Iron ore prices are expected to remain under pressure next week, continuing to fluctuate at lows.

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