Iron ore prices experienced minimal fluctuations on Thursday as investors considered the impacts of escalating costs due to the ongoing conflict in Iran versus the potential increase in supply of this essential steelmaking material.
The most actively traded iron ore contract on China’s Dalian Commodity Exchange (DCE) remained steady at 785.5 yuan ($115.05) per metric ton as of 0212 GMT. Meanwhile, the benchmark May iron ore on the Singapore Exchange recorded a slight decline of 0.18%, settling at $107.1 per ton at 0102 GMT. Earlier in the session, prices hit a peak of $107.5, the highest since March 30.
The Singapore benchmark has consistently remained above the critical psychological level of $100 for over six weeks. Iran recently announced the capture of two container ships attempting to navigate the Strait of Hormuz, following gunfire directed at those vessels and another ship. This escalation has raised concerns about the prospects for renewed US-Iran peace discussions.
The conflict in Iran has led to soaring energy prices, which in turn have amplified freight and input costs, thereby providing some support to iron ore prices, according to analysts. However, anticipated increases in supply are limiting price growth.
BHP Group reported third-quarter iron ore output that surpassed expectations, and the company’s resolution of a long-standing supply contract dispute with China could signify increased shipments to the largest consumer globally. Additionally, Rio Tinto, the premier iron ore supplier, maintained its sales forecast for Pilbara iron ore for 2026 in the range of 323 million to 338 million tons but flagged potential supply chain risks stemming from the current Middle East conflict.
Prices for other essential steelmaking materials also saw increases, with coking coal rising by 0.43% and coke by 1.03%. Steel benchmarks on the Shanghai Futures Exchange showed positive movement as well: rebar gained 0.35%, hot-rolled coil advanced by 0.68%, wire rod increased by 0.61%, and stainless steel edged up 0.27%.
Published on April 23, 2026.
