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18.12.202506:26:46UTC+00Iron Ore Gains on Demand Prospects

Iron ore futures surged past CNY 770 per ton, marking a two-week high driven by improved profitability among steelmakers and anticipated restocking activities in China, the world's leading consumer. The expectation of reduced input costs, notably for coal and coke, is set to enhance steel margins, possibly encouraging some mills to boost production levels. Chinese steel manufacturers are also poised to start restocking ahead of the Lunar New Year holiday in February. This strategic move ensures consistent output during a period traditionally characterized by slowed logistics operations. Mills often secure necessary cargoes beforehand to meet production demands throughout the holiday season. However, last week, iron ore prices experienced a decline to five-month lows following an announcement from China's Ministry of Commerce that certain steel products would be subjected to an export licensing regime beginning January 1.

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