Inventory remains high, demand growth slows down, and iron ore prices trend steadily [SMM Brief Review]

Published: Feb 26, 2026 18:22

Save

Today, iron ore futures were in the doldrums, with the most-traded contract I2605 ultimately settling at 748.5 yuan/mt, unchanged from the previous trading session. Spot prices fell by 2-4 yuan/mt compared to the previous trading day. Traders showed moderate enthusiasm in offering prices, while steel mills had limited inquiries, resulting in a subdued spot trading atmosphere.

The latest SMM data revealed that total inventories at ten key ports reached 118.87 million mt, up 1.80% WoW from the pre-holiday level. Overall supply remains relatively loose, with port inventories at high levels and the inventory buildup trend yet to show a clear turning point. On the demand side, daily average hot metal production continued to grow steadily, but given strong market expectations for environmental protection-driven production restrictions during the Two Sessions, iron ore's upside room is relatively limited. In summary, iron ore prices are currently more likely to fall than rise, and in the short term, prices may fluctuate rangebound.

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

28 mins ago

[SMM Iron & Steel] US Steel Output Hits Record Utilization Amid Domestic Momentum

The American Iron and Steel Institute (AISI) reported that for the week ending May 2, 2026, domestic raw steel production reached 1,856,000 net tons, with a capability utilization rate of 80.4%. This represents a 9.6% increase compared to the same week in 2025. Adjusted year-to-date production through early May reached 31,405,000 net tons, reflecting robust industrial demand in the North American market.

28 mins ago

[SMM Iron & Steel] ArcelorMittal Revises Decarbonization Strategy: No New EAFs This Decade

ArcelorMittal has adjusted its long-term strategy, stating that it will not initiate any new electric arc furnace (EAF) investments until its 2 Mt/y reference project in Dunkirk, France, is nearing completion. The group's 2025 Sustainability Report indicates that due to high energy prices in Europe (well above $30/MWh) and slow progress in green hydrogen infrastructure, the company will adopt a "flexible and adaptable" strategy, prioritizing financial discipline. The Dunkirk EAF project, costing €1.3 billion, has a planned capacity of 2 Mt/y and is expected to begin production in 2029, reaching full capacity in 2030-2031. The new EAF will replace two existing blast furnaces with a combined capacity of 1.8 Mt/y.

28 mins ago

[SMM Iron & Steel] Kazakhstan Extends Ban on Ferrous Scrap Exports

Kazakhstan has officially extended its ban on the export of ferrous scrap by rail and road for another six months. The measure is intended to ensure a stable supply of raw materials for domestic steel producers as they ramp up production to meet national infrastructure goals. Regional billet prices rose by $10–15 per ton following the announcement.

28 mins ago