news27 March 2026

Steel Prices Fall While Iron Ore Rises Due to Australian Supply Disruptions – Volatile Metal Market

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Steel Prices Fall While Iron Ore Rises Due to Australian Supply Disruptions – Volatile Metal Market

Global steel market fluctuates in late March 2026

In late March 2026, the global steel market recorded mixed developments between finished steel prices and raw material prices, reflecting a temporary imbalance in the metallurgical industry's supply chain. While steel prices on the Shanghai Exchange tended to decrease due to consumption demand not yet clearly recovering, iron ore prices increased due to concerns about supply disruptions from Australia – the world's largest iron ore exporting region.

This development shows that the steel market is currently simultaneously affected by many factors, including weather conditions impacting mining and ore transportation activities, production control policies in China to reduce environmental pollution, as well as pressure from global energy costs and interest rates. When raw material supply is at risk of tightening but steel demand does not increase proportionally, iron ore prices and steel prices may fluctuate in two different directions in the short term.

In the trading session on March 26, 2026, this trend was evident as steel rebar contracts decreased on the SHFE Exchange, while iron ore contracts on the Singapore Exchange and Dalian Exchange increased due to market concerns that the closure of export ports in the Pilbara region would disrupt global supply.

Steel prices decrease due to consumption demand not yet strongly recovering

On the Shanghai Futures Exchange (SHFE), April 2026 rebar futures prices decreased by 0.51% to 3,106 yuan/ton.

Other products also decreased:

Hot-rolled steel coil decreased by 0.45%
Wire rod decreased by 0.12%
Construction steel slightly decreased

The main reason is that steel consumption demand in China has not yet strongly recovered, especially in the real estate and construction sectors, which account for a large proportion of global steel consumption.

Additionally, persistently high global interest rates have slowed down construction and industrial investment, leading to weakened steel demand.

Iron ore increases due to supply disruption from Australia

On the Singapore Exchange, April 2026 iron ore futures prices increased to 107.34 USD/ton, while contracts on the Dalian Exchange also slightly increased.

The main reason comes from the temporary suspension of iron ore export ports in the Pilbara region, Western Australia, due to a tropical cyclone.

Affected ports include:

Ashburton
Dampier
Cape Preston
Varanus Island

This is the world's largest iron ore exporting region, supplying raw materials for most of China's steel industry.

Supply disruption has led to market concerns about raw material shortages, pushing up ore prices in the short term.

Production restrictions in Tangshan prevent sharp increase in ore prices

Tangshan City, China's largest steelmaking hub, has activated a Level 2 environmental alert due to air pollution.

This measure causes:

Reduced blast furnace capacity
Restricted scrap transportation
Controlled steel output

When steel output decreases, iron ore demand also decreases, preventing ore prices from rising too sharply despite supply disruptions.

This is an important factor causing the current metal market to fluctuate in mixed directions.

High energy prices and US interest rates affect the entire metal market

Rising energy costs increase steel production costs, while tight monetary policy in the US causes speculative capital to withdraw from commodities.

This makes it difficult for the steel market to rise sharply, even with increasing raw material prices.

Other raw materials also decreased:

Coking coal decreased
Coke decreased
Steel coil decreased

Domestic steel prices remain stable due to business stabilization

In Vietnam, construction steel prices remain stable:

Hòa Phát CB240 ~14.920 đ/kg
D10 CB300 ~15.020 đ/kg
Việt Ý ~14.700 – 14.800 đ/kg
Việt Đức ~14.800 đ/kg
Pomina maintains prices

Domestic businesses have not yet made strong adjustments due to inventory and market demand not yet increasing.

Impact on coated steel sheet, mechanical engineering, and industrial materials sectors

Fluctuations in iron ore and steel prices will directly affect:

galvanised steel sheet
electro-galvanised steel sheet
cold-rolled steel
Steel coil
Mechanical materials

When raw materials increase, steel sheet and steel prices may also increase in the coming period, especially for imported products.

Therefore, mechanical engineering, steel door, metal furniture, and construction businesses should monitor the market to proactively plan purchases.

Phu Cuong Steel Sheet & Steel – Leading Reputable Large-Width Steel Sheet Distributor

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galvanised steel sheet, electro-galvanised steel sheet EG, GA, cold-rolled steel
Available in large widths from 1000mm, 1250mm to 1500mm (rare in the market)
Custom cutting, coil slitting, bending, steel flat bar cutting on demand
Synchronous, high-precision fabrication machinery system
Correct thickness, correct standards, full CO CQ
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Own delivery trucks, optimizing costs for construction project customers

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Hotline: 0933 919 899
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Website: tonthepphucuong.com

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