Seaborne iron ore prices weakened on Friday following a pullback on the futures market.
The Kallanish KORE 61% Fe index declined by $0.8/tonne on Friday to $99.57/dry metric tonne cfr Qingdao, while the KORE 62% Fe index dropped by $0.9/t to $101.28/dmt cfr. The daily spread between the KORE 61% and 62% Fe index was $1.71/t.
The KORE 65% Fe index slumped by $2.09/t to $118.37/dmt cfr Qingdao, while the KORE 58% Fe index retreated by $0.87/t to $88.24/dmt cfr.
On public platforms, 80,000t of MAC Fines were booked at $98.30/t with the laycan of 18-27 September.
On the Dalian Commodity Exchange (DCE), the most-traded, January 2026 iron ore contract slumped by CNY 7.5/t ($1.04/t) to CNY 777/t on Friday.
On the Singapore Exchange, September 62% Fe futures and 65% Fe futures inched lower by $0.19/t and $0.79/t, respectively, to $101.9/t and $116.7/t. The same contract for 58% Fe futures declined by $0.08/t to $88.97/t.
Tangshan billet remained stable at CNY 3,060/t.
According to the China Iron and Steel Association (CISA), member steel producers in China produced a total of 20.74 million tonnes of crude steel in early-August, with average daily output up 4.7% compared with the prior ten days. Pig iron production reached 19.14mt, with average daily output rising 3.2% from the previous 10-day period.
Data indicates that steel mills remained highly active entering August, with inventories rising slightly. Recent market surveys show that nearly 70% of Chinese mills are currently profitable, maintaining strong production willingness, and suggesting that hot metal output is likely to stay elevated.
Overall, robust demand continues to provide support for iron ore prices.
However, trade policy uncertainty is adding potential volatility for the market. On Friday, US President Donald Trump stated that he would announce tariffs on steel and semiconductor chip imports in the coming weeks. It remains unclear whether Trump's comments on steel tariffs are overstated, given that he already raised steel and aluminium import tariffs to 50% in June.
