Iron Ore Slips on Weak Fundamentals

2026-02-03 05:53 By Jam Kaimo Samonte 1 min. read

Iron ore futures fell below CNY 780 per tonne on Tuesday, drifting back toward one-month lows as pre-holiday steel demand weakened and global supply increased.

Chinese steel mills trimmed purchases ahead of the extended Lunar New Year holiday while preparing for scheduled maintenance, dampening near-term demand.

Port activity in China also softened, with industry data showing lower transaction volumes, suggesting mills are relying less on spot cargoes.

Port inventories rose 1.16% in the latest week, according to Steelhome data, while shipments from Australia and Brazil accelerated in late January, adding to supply pressures.

Elsewhere, China is reportedly helping Algeria reopen the Gara Djebilet mine, North Africa’s largest iron ore deposit.

Meanwhile, Australian miner Strike Resources signed a memorandum of understanding with Peruvian shipping company Naveria Petral for the proposed San Nicolas port project on Peru’s southern coast, aimed at supporting future iron ore exports.



News Stream
Iron Ore Hits 7-Week Low
Iron ore futures fell below CNY 770 a ton, hitting a seven-week low as rising supply coincided with seasonally weaker demand ahead of the Lunar New Year holiday. Analysts noted that iron ore inventories at Chinese ports are near record highs, while stockpiles at steel mills have also continued to build. Mills have also scaled back output and largely completed restocking as the holiday approaches, while several blast furnaces and electric-arc furnaces have paused operations for planned maintenance, raising concerns over near-term feedstock demand. That said, industry data showed blast furnace utilization remained above 86%, higher than the previous week, and daily hot metal output rose by 21,000 tons week-on-week. Elsewhere, iron ore shipments from Australia and Brazil accelerated in late January, adding further pressure to near-term supply.
2026-02-05
Iron Ore Pressured by Weak Demand
Iron ore futures fell toward CNY 780 per ton on Wednesday, hovering near a six-week low as signs of softening demand emerged ahead of the Lunar New Year slowdown, despite expectations for higher hot metal output. Chinese steel mills remain active, with production of finished products such as rebar and hot-rolled coil accelerating last week. However, mill restocking has paused as construction sites suspend work for the holiday period. Port activity in China also weakened, with industry data showing lower transaction volumes, indicating reduced reliance on spot cargoes. At the same time, shipments from Australia and Brazil accelerated in late January, adding to near-term supply pressure. Elsewhere, China is reportedly assisting Algeria in reopening the Gara Djebilet mine, North Africa’s largest iron ore deposit.
2026-02-04
Iron Ore Slips on Weak Fundamentals
Iron ore futures fell below CNY 780 per tonne on Tuesday, drifting back toward one-month lows as pre-holiday steel demand weakened and global supply increased. Chinese steel mills trimmed purchases ahead of the extended Lunar New Year holiday while preparing for scheduled maintenance, dampening near-term demand. Port activity in China also softened, with industry data showing lower transaction volumes, suggesting mills are relying less on spot cargoes. Port inventories rose 1.16% in the latest week, according to Steelhome data, while shipments from Australia and Brazil accelerated in late January, adding to supply pressures. Elsewhere, China is reportedly helping Algeria reopen the Gara Djebilet mine, North Africa’s largest iron ore deposit. Meanwhile, Australian miner Strike Resources signed a memorandum of understanding with Peruvian shipping company Naveria Petral for the proposed San Nicolas port project on Peru’s southern coast, aimed at supporting future iron ore exports.
2026-02-03