05.02.202605:46:33UTC+00Iron Ore Hits 7-Week Low

Iron ore futures have dipped below CNY 770 per ton, reaching a seven-week low, as increasing supply aligns with the customary decline in demand preceding the Lunar New Year holiday. Industry experts have observed that iron ore inventories at Chinese ports are approaching record levels, while stockpiles at steel mills have also grown. Additionally, mills have reduced production and have largely finalized their restocking efforts as the holiday draws near. Several blast furnaces and electric-arc furnaces have paused their operations for scheduled maintenance, leading to concerns about short-term demand for feedstock. Despite these concerns, industry data indicates that blast furnace utilization remains above 86%, a figure higher than the previous week, and daily hot metal output has risen by 21,000 tons compared to the previous week. Furthermore, iron ore shipments from Australia and Brazil increased towards the end of January, adding to the immediate supply pressure.