As of early September, iron ore prices (KORE 62% Fe/Qingdao) had rebounded to over $100/t CFR, whilst in August this commodity had mainly traded within a narrow range of $95–98/t.
As at 4 September, the price stood at $100.8/t CFR, which is 2.6% higher than on 31 July.
At the start of the month, iron ore prices are being supported by expectations that steel mills will restock ahead of China’s National Day in October. At the same time, the market’s hopes for a seasonal upturn in construction activity in September have not yet materialised.
Buyer interest is currently also being held back by companies’ cautious procurement policies (factories are focused on meeting current needs) and lower prices for rolled steel, so steelmakers are not yet prepared to increase their spending on raw materials.
Market sentiment in September was boosted by Beijing’s announcement of measures to strengthen the financial system. On 6 September, the country’s Ministry of Finance announced the forthcoming issue of special treasury bonds worth 300 billion yuan (around $44.25 billion) to replenish the core capital of eight state-owned financial institutions directly managed by the central government. The list included two major state-owned commercial banks.
China is also seeking to diversify its iron ore supplies and strengthen its influence over pricing. There have recently been initial reports that the Chinese steel group Baowu is seeking to acquire a 15–25% stake in BHP’s Jimblebar mine in the Pilbara region (Western Australia). The Australian company has neither denied nor confirmed these reports.
At the same time, the state-owned buyer China Mineral Resources Group (CMRG) has advised a number of steelworks to refrain from purchasing Pilbara Blend ore from the Rio Tinto Group. This is due to ongoing contract negotiations with the Australian mining giant.
It should be noted that global iron ore shipments in August 2026 remained relatively stable. Despite subdued demand from the key importer—China—the leading producing countries showed predominantly positive or neutral trends.
