Hot metal weakens, news dominates iron ore trend [SMM Iron Ore Daily Review]

Published: Aug 12, 2026 17:31

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Iron ore futures moved steadily today. The most-traded DCE contract I2609 closed at 720.5 yuan/mt, up 0.14% from the previous session. Spot prices at Qingdao Port fell 0–2 yuan/mt from the prior trading day. Traders mostly followed market trends, while steel mills purchased based on rigid demand, with overall spot volume relatively low so far today.

Demand support for iron ore weakened slightly this week. SMM data showed the blast furnace operating rate across 242 steel mills stood at 88.91%, down 0.13 percentage points WoW. The daily average hot metal output at sample mills was 2.4005 million mt, down 5,300 mt WoW. On the news front, frequent rumors are circulating, making it difficult to distinguish fact from fiction. The market is focused on progress in mine contract negotiations, with most funds staying on the sidelines awaiting clearer direction. Overall, ore prices may continue to move sideways in the near term, but iron ore fundamentals alone cannot currently drive a directional trend. The broader market still relies on news for direction. [SMM Steel]

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