FX.co ★ Iron Ore Pressured by Weak China Demand

Iron ore futures have remained below CNY 770 per ton, situated near their lowest in eight weeks, as demand waned in China, the largest consumer. This slowdown comes as manufacturers paused operations in anticipation of the extended Lunar New Year holidays. Consequently, iron ore port inventories in China have increased, reaching over 160 million tons, marking the first instance since February 2022 that stocks have surpassed this threshold. Heightened supply pressures have also emerged, with key exporters like Australia and Brazil accelerating shipments towards the end of January. Last week, Brazilian mining leader Vale announced a record-setting delivery volume of iron ore for 2025. In Australia, operations at Port Hedland, the nation's primary iron ore export hub, have resumed following the lifting of cyclone warnings. This terminal is pivotal for national exports, handling substantial shipments from leading miners, including BHP Group and Fortescue Ltd.