The increase in iron ore and steel prices in China on October 29, 2026, indicates positive changes in the market for these products. The price of iron ore on the Dalian exchange reached 682.0 yuan per ton, which is a 1.49 percent increase compared to the previous day. Additionally, port indices for iron ore with grades of 61 percent, 58 percent, and 65 percent reached 654, 608, and 817 yuan per ton, respectively.
Increase in Maritime Indices and Port Inventory Fluctuations
Maritime indices for iron ore with a grade of 61 percent reached 90.90 dollars per ton, and for iron ore with a grade of 65 percent, it reached 107.05 dollars per ton. This price increase reflects higher demand and improved market conditions. In this context, port inventories on October 29, 2026, decreased by 618,100 tons. This reduction in inventory is due to a decline in fine iron ores, concentrates, and pellets, while only coarse iron ores experienced a slight increase.
Read more: Increase in the Water Level of the Rhine River and Its Impact on the Fuel Supply Chain
Factors Influencing the Market and Future Prices
Two consecutive increases in hot metal consumption indicate sustained demand for steel production. Meanwhile, raw material inventory management, final steel production margins, and environmental measures continue to influence purchasing plans. Existing challenges in price scales and demand may impact physical transactions. Currently, the question arises whether higher prices can attract and sustain physical transactions. Improved purchases alongside orders could, in turn, provide a solid foundation for these price increases.
However, if the price increases are primarily driven by offers and inventories remain limited, high supply flows and profitability constraints could hinder further price increases. Additionally, high transportation costs necessitate evaluating costs against contracts and settlement conditions, leading to a cautious and limited outlook.
Read more: Significant Growth in Feeder Container Ship Capacity in the 2026 Market · Increase in Iron Ore Prices Above 680 Yuan Following Improvement in Steel Production in China
