Hot metal production peaks, iron ore prices may continue to consolidate at lows [SMM Daily Imported Ore Briefing]

Published: Jun 17, 2026 17:14

Save

The most-traded iron ore contract continued to decline today. The most-traded I2609 contract closed at 747.5 yuan/mt, down 2.61% from the previous trading session, with the decline widening notably. Port spot prices also fell, down 10-15 yuan/mt from the previous day. Traders diverged in their actions—some suspended offers to wait and see, while others sold at prevailing market prices. Steel mills maintained a cautious sentiment with a strong desire to bargain down prices, slowing their procurement pace. Overall market trading atmosphere was subdued, and spot transaction volumes were limited as of now.

According to an SMM survey, as of June 17, the blast furnace operating rate among the 242 steel mills tracked by SMM stood at 90.67%, up 0.20 percentage points MoM. The sample mills' daily average hot metal output reached 2.465 million mt, up 5,300 mt MoM. However, looking ahead to next week, as pressure from losses at steel mills intensifies, more maintenance plans are arising, and hot metal output may reach a turning point. On the demand side, a marginal weakening is expected, which, combined with ongoing supply-side pressure accumulation and the industrial off-season effect, will jointly weigh on iron ore prices, causing the decline to deepen further. In the short term, market pessimism dominates, and iron ore prices are expected to continue to consolidate at lows.

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 for 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

3 hours ago

[SMM Hot-rolled Coil Daily Transactions] Spot market transactions continue to pull back

[SMM Hot-rolled Coil Daily Transactions] On June 17, the total daily trading volume of hot-rolled coil from sample enterprises in SMM's four cities (Shanghai, Lecong, Tianjin, Ningbo) was 13,160 mt, down 830 mt or 5.5% DoD, up 23.11% YoY (solar calendar), and up 23.11% YoY (lunar calendar).

3 hours ago

MMi Daily Iron Ore Report (June 17)

The DCE iron ore futures continued to decline today, with the benchmark I2609 contract finally closing at 747.5 yuan/ton, down 2.61% from the previous session and extending losses markedly.

3 hours ago

6.17 SMM Global Steel Daily Report

Seaborne import and domestic billet trading in Turkey have both slowed down, weighed by expectations surrounding the US-Iran peace agreement and persistently weak local demand. The market broadly anticipates that if the Strait of Hormuz fully reopens, lower freight rates and an influx of Iranian material will reshape the regional supply landscape, prompting most buyers to adopt a wait-and-see approach in hopes of securing lower procurement costs. On the import front, offers from two major Russian mills remain firm at 493-495 USD/tonne FOB, but Turkish buyers are only bidding at 500-505 USD/tonne CFR. The domestic market is equally under pressure; dragged down by falling scrap and rebar prices, the price for Turkish domestic billets has dropped by 10 USD/tonne to 530 USD/tonne EXW, reflecting a continuously sluggish trading sentiment.

3 hours ago