Iron Ore Halts Trading During Lunar New Year Holiday

Iron ore futures dropped below CNY 750 per ton in mid-February, hitting seven-month lows, as trading in mainland China paused for the Lunar New Year holiday running from Feb. 16 to 23. The steelmaking ingredient has faced sustained pressure in recent weeks as inventories in China approached record highs and mills scaled back operations ahead of the holiday. At the same time, supply expanded as major exporters Australia and Brazil increased shipments in late January. Meanwhile, work at the SimFer iron ore project in Guinea has been suspended following the death of an employee of a contracting firm. Looking ahead, investors are focused on a key parliamentary meeting in Beijing next month, where authorities are expected to outline annual economic targets and potentially unveil additional stimulus measures.

Iron ore futures steadied above CNY 760 per ton after sliding to multi-week lows in recent sessions, as markets drew some support from China’s central bank pledging additional financial backing to boost domestic demand. The pledge comes amid excess industrial capacity and weak consumption, which continue to weigh on business confidence and the growth outlook. Recent data showed consumer prices rose less than expected in January, while producer deflation extended for a 40th consecutive month, underscoring persistent deflationary pressures. Investors are now looking ahead to a key parliamentary meeting in Beijing next month, where authorities are set to outline economic targets for the year and may unveil fresh stimulus measures. Meanwhile, consumption in top importer China softened as manufacturers curtailed activity ahead of the extended Lunar New Year holidays. At the same time, supply pressures increased as major exporters Australia and Brazil ramped up shipments in late January.

Iron ore futures held below CNY 770 per ton, hovering near eight-week lows, as demand from top consumer China cooled with manufacturers halting activity ahead of the extended Lunar New Year holidays. Port inventories in China continued to build as the industry entered a seasonal shutdown, with data showing stocks rising above 160 million tons for the first time since February 2022. Supply pressures also mounted as major exporters Australia and Brazil ramped up shipments in late January. Brazilian mining giant Vale said last week it delivered a record volume of iron ore in 2025. In Australia, Port Hedland, the country’s largest iron ore export hub, resumed operations after cyclone warnings were lifted. The terminal handles a significant share of national exports from major miners including BHP Group and Fortescue Ltd.