FX.co ★ Iron Ore Slips on Rising Inventories

Iron ore futures have dipped below CNY 790 per ton, reversing earlier gains from this week. This decline is attributed to increasing portside inventories in China, suggesting sluggish demand alongside sufficient supply. Notably, an industry report highlighted a significant accumulation of coarse fines, while stocks of fine ore, lump ore, and pellets have continued to wane. Additionally, the timeframe for iron ore restocking ahead of the Lunar New Year is narrowing, with recent trends indicating limited potential for additional increases. Over forty independent electric-arc furnaces are slated for maintenance shutdowns between February 1st and 8th, which is expected to dampen short-term demand. Despite this, blast furnaces are anticipated to boost production next week as more steel mills resume activities after their maintenance period. Iron ore prices are also reflecting a broader retreat in the metals sector, as a global speculative surge transitions toward profit-taking.