Strengthening Fundamentals but Rising Geopolitical Risks, Iron Ore Under Pressure on Both Fronts [SMM Imported Ore Daily Brief]

Published: Jun 3, 2026 17:24

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On June 3, 2026, DCE iron ore futures trended weaker today. The most-traded contract I2609 ultimately closed at 780 yuan/mt, down 0.57% from the previous trading session. Port spot prices fell 3-5 yuan/mt from the previous day. Traders showed moderate enthusiasm in offering prices; steel mill purchases were mostly driven by rigid demand; as of now, overall spot market transactions remained thin.
Looking ahead, iron ore fundamentals strengthened slightly. During this period, SMM sample steel mills reported daily average pig iron production of 2.4302 million mt, up 2,100 mt WoW. Next week, as large-volume blast furnaces that previously underwent maintenance resume production successively, hot metal production and rigid demand for iron ore are expected to rebound, providing downside support for ore prices. On the macro front, renewed US-Iran disputes and escalating geopolitical risks in the Middle East boosted market risk-aversion sentiment and triggered sell-offs of risk assets, suppressing the upside room for iron ore as an industrial product. Therefore, overall, with fundamental support below and macro pressure above, iron ore is expected to trade in a range-bound pattern in the short term.

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