FX.co ★ Iron Ore Rises on Restocking Prospects

Iron ore futures have risen above CNY 760 per ton after hitting five-month lows, driven by anticipation that Chinese steel mills will commence restocking in preparation for the Lunar New Year holiday in February. Traditionally, steel manufacturers purchase resources in advance to meet production demands during the holiday when logistical activities are reduced. Recently, iron ore prices faced downward pressure after China’s Ministry of Commerce declared that from January 1, certain steel products would require export licenses. This decision comes in response to a spike in Chinese steel exports, which has triggered increased protectionist measures in foreign markets. The Chinese steel industry is increasingly relying on exports due to weak domestic demand, which is linked to a sustained slump in the property market.