FX.co ★ Iron Ore Holds Near 11-Month High

Iron ore futures remained steady above 810 CNY per ton on Friday, maintaining levels close to their peak since February of the previous year. This stability is attributed to robust demand and the pre-Lunar New Year restocking by steel producers. Prices have been further buoyed by anticipated additional stimulus measures from China, the largest consumer of iron ore. Despite a slight uptick in consumer price inflation, underlying deflationary pressures persist. The People's Bank of China announced plans to reduce the reserve requirement ratio and lower key policy interest rates within the year to ensure sufficient liquidity and uphold a supportive monetary policy. Concurrently, industry reports indicated that iron ore inventories at major Chinese ports increased for the seventh consecutive week, reaching nearly 162.7 million tons as of January 8. Additionally, steel inventories saw an upward trend in the latest reporting period, reflecting improved supply availability.