A leading commodity in the spotlight, iron ore is dragging down the black commodity sector, sliding over 2% during intraday trading.

The current fundamentals for iron ore are loose, coinciding with the traditional high-temperature off-season. Downstream demand from real estate and infrastructure construction has slowed, leading to sluggish finished steel sales.

Additionally, recent steel production has declined, with more blast furnaces undergoing maintenance, reducing daily iron ore consumption. The overall weakness in the black commodity complex is weighing on iron ore, which is expected to maintain a weak, fluctuating trend in the near term.

Port spot prices are stable with a slight decline. 60.8% PB fines are now at 688 yuan, down 2 yuan, while Carajas fines remain unchanged at 842 yuan.

Australian miner MinRes released its operational report for the second quarter of fiscal year 2026. The report shows that the Onslow Iron project produced 8.754 million tonnes of iron ore in Q2, a 12% increase quarter-on-quarter and a 42% increase year-on-year. Shipments reached 9.596 million tonnes, up 33% quarter-on-quarter and 66% year-on-year, setting a quarterly shipping record.

For the Pilbara Hub iron ore project, Q2 shipments were 2.701 million tonnes, up 31% quarter-on-quarter and 7% year-on-year. For the full fiscal year 2026, MinRes' attributable iron ore shipments reached 29.543 million tonnes, a new annual record.

This follows quarterly reports from Rio Tinto and Vale, which have already confirmed that major miners' production and sales remain at high levels, further solidifying the outlook for ample medium-term supply.

On the demand side, hot metal output continues to decline, while low steel mill margins are curbing the willingness to procure raw materials.