Steel Market Update
Advisory Bazaar Info Services
NMDC Cuts Iron Ore Prices
Indian state-owned miner NMDC Limited reduced iron ore prices by ₹200 per ton effective August 8. The base price of high-grade lump ore has been reduced to ₹5,250 per ton, while fines are now priced at ₹4,500 per ton.
The price reduction comes despite a strong 31% year-on-year increase in July iron ore production, which reached 4.06 million metric tons.
Ferrexpo Suspends Ukrainian Iron Ore Operations
Ukraine-based Ferrexpo has temporarily suspended iron ore production due to continued risks to Black Sea shipping routes and the need to preserve working capital.
The suspension affects nearly 189,000 tonnes of high-grade pellets, including around 90,000 tonnes of premium direct-reduction material. Ferrexpo produced 1.56 million tonnes of iron ore in the first half of 2026, making it an important supplier to the European market.
US Raw Steel Production Edges Higher
According to the American Iron and Steel Institute (AISI), US domestic raw steel production for the week ending August 1 increased 0.6% to 1.870 million net tons.
Capacity utilization stood at 81.0%, while year-to-date production reached 55.510 million net tons, up 5.8% from the same period last year.
China Iron Ore Imports Decline MoM
China imported 108.085 million tonnes of iron ore and concentrates in July, according to the latest customs data. Imports declined 4.09% month-on-month but increased 3.50% year-on-year.
For January-July, cumulative iron ore imports reached 736.841 million tonnes, up 5.9% year-on-year.
July Global Shipments and Port Arrivals
Global iron ore shipments totaled 156.60 million tonnes in July, increasing 14.18% month-on-month, with notable growth from Australia and Brazil.
China’s port arrivals rose 17.04% MoM to 134.16 million tonnes. However, the increase was largely driven by short-term factors, including differences in statistical periods, weather disruptions and concentrated arrivals toward the end of the month, rather than a structural expansion in supply capacity.
August Iron Ore Outlook
Brazil is entering its peak Q3 shipping season, while Australian shipments are expected to gradually recover after a relatively weak start to the new fiscal year. This should provide some support to mainstream mine arrivals in August.
However, West Africa remains in its rainy season, limiting a significant recovery in non-mainstream shipments until Q4. Frequent typhoon activity could also disrupt China’s port arrivals in the near term.
On the demand side, adverse weather continues to weigh on downstream steel operating rates, keeping iron ore demand under pressure. In addition, August’s statistical period is one week shorter than July’s.
Market Outlook
China’s iron ore shipments and port arrivals are therefore expected to decline month-on-month in August. While stronger Brazilian and recovering Australian shipments may provide supply-side support, subdued downstream steel demand, weather disruptions and the shorter statistical period could keep the iron ore market under pressure.