FX.co ★ Iron Ore Gains on Strong China Trade Data

Iron ore futures have surged to approximately CNY 825 per ton, marking their highest point since February of the previous year. This rise follows China's announcement of record-breaking imports of the steelmaking material for December and the entire year of 2025. Several factors have contributed to this increase, including low inventory levels, improved steel margins, and restocking activities in anticipation of the Lunar New Year holiday in February. Additionally, China recorded unprecedented steel exports last month as traders expedited shipments ahead of Beijing's planned export license mandate for 2026. On the supply side, conditions are supportive as recent industry data indicates a slowdown in shipments from Australia and Brazil. Market sentiment has also been buoyed by expectations of further policy easing. This optimism follows a recent meeting of China's cabinet, where a comprehensive package of fiscal and financial measures was discussed, aiming to stimulate domestic demand and bolster household consumption.