Coking coal and coke futures surge drives iron ore back past $108
Time:Tue, 26 May 2026 07:07:52 +0800
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The price of Australia's 62% Fe grade iron ore fines delivered to China rose back above US$108 per ton yesterday (May 25), hiking by US$0.45 to hit US$108.40. This two-day rebound lifted the market from its five-week low of US$107.55 recorded on May 21.
A serious coal mining accident in Shanxi triggered supply anxieties, forcing Chinese coking coal and coke futures to lock at their daily limit up. This surge increased production costs for the entire black series and lifted spot steel prices. Therefore, daily molten iron output exceeded 2.4 million tons last week, increasing ore demand.
High ocean freight rates and declining Chinese port inventories provide price support, keeping short-term market sentiment strong. However, long-term trends depend on steel demand recovery during the upcoming off-season. This recent rally scales back monthly losses to US$1.35, keeping the year-to-date growth at US$1.90.
