Macro News Boosts Market Sentiment, Iron Ore Prices Follow Upward [SMM Brief Review]

Published: Oct 27, 2025 17:21

Save

Dalian iron ore futures strengthened today, with the most-traded I2601 contract settling at 786.5 yuan, up 1.94% from the previous trading day. Main port spot cargo prices rose 10-15 yuan/mt compared to the previous trading day, with PB fines transaction prices in Shandong at 785-790 yuan, up 10 yuan/mt; PB fines transaction prices in Hebei were at 795-802 yuan/mt, up 10-12 yuan/mt from the previous trading day. Steel mills procured based on demand today, while traders followed market trends, resulting in a relatively subdued overall trading atmosphere. Environmental protection-driven production restrictions entered the implementation phase this week in Tangshan, Hebei, with most steel mill blast furnaces undergoing maintenance and idling starting today, leading to a significant daily reduction in hot metal production and a decline in iron ore demand. However, positive outcomes from the US-China trade talks over the weekend, coupled with US CPI data supporting expectations for a US Fed interest rate cut, boosted market sentiment and drove futures higher. In the short term, iron ore prices are expected to hold up well. Considering the implementation of the coke price hike, which further compressed steel mill profits, hot metal production is anticipated to decline further, limiting the upside potential for ore prices.

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 to learn 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

Feb 6, 2026 18:30

Before the holiday, the black chain is unlikely to see a trend-driven market [SMM Steel Industry Chain Weekly Report].

This week, ferrous metals were in the doldrums, with coking coal and coke staging a mid-week rise. At the beginning of the week, financial markets experienced sharp fluctuations, dragging down sentiment in the ferrous chain and leading to a pullback in futures. Mid-week, Indonesia's cut to coke production quotas drove coking coal and coke futures to lead the gains, though the impact was more pronounced on thermal coal, while coking coal's rise was largely sentiment-driven and short-lived. In the latter part of the week, finished products continued their seasonal inventory buildup, and support from the raw material side weakened, causing the entire ferrous chain to pull back. In the spot market, with the Chinese New Year holiday approaching, purchasing activity slowed down further, with end-users only making limited, as-needed purchases at low prices.

Feb 6, 2026 18:30

Feb 6, 2026 18:09

MMi Daily Iron Ore Report (February 6)

Today, the DCE iron ore futures continued to hit bottom today, with the most-traded contract I2605 closing 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.

Feb 6, 2026 18:09

Feb 6, 2026 17:41

[SMM Chromium Daily Review] Inquiries and Transactions Weakened, Chromium Market Showed Mediocre Performance Before the Holiday

[SMM Chrome Daily Review: Trading and Inquiries Weakened, Chrome Market Showed Mediocre Performance Before the Holiday] February 6, 2026: Today, the ex-factory price of high-carbon ferrochrome in Inner Mongolia was 8,500-8,600 yuan/mt (50% metal content), flat MoM from the previous trading day...

Feb 6, 2026 17:41