Iron ore prices in China experienced significant growth on October 28, 2026, following a slight improvement in production. On this day, the price of actively traded contracts on the Dalian Commodity Exchange (DCE) reached 672.0 yuan per metric ton, reflecting a 1.20 percent increase. Additionally, the prices of major brands in Qingdao rose by 5 to 6 yuan per metric ton.
Increase in International Indices
Maritime indices for iron ore with 61 percent and 65 percent purity reached 89.65 and 106.50 dollars per metric ton, respectively, with all 12 reported brands experiencing price increases. However, composite port indices remained mixed, indicating a lack of correlation between brand prices and composite pricing.
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Hot Metal Production and Demand
Daily hot metal production on October 28 reached 2.3621 million tons, which is an increase of 3,700 tons compared to the previous day and marks a second consecutive period of growth. This production increase is due to stable consumption of base raw materials. However, purchases depend on factory inventories, end-user orders, and profitability, and production growth does not automatically lead to the replenishment of discretionary inventories.
Recent inputs have increased by 12.47 percent compared to last week, so the impact of supply improvement should be assessed alongside port collections. The short-term test will be whether this price increase attracts stable transactions or not. Stronger purchases alongside improved production could bolster price support, while purchases limited to immediate needs could constrain existing supply and margin limitations for price increases.
A range-bound view still seems appropriate, and a distinction should be made between a one-day price improvement and a change in demand trend.
