(Jan 12): Iron ore advanced, buoyed by pre-holiday restocking from steel mills and a lift in hot-metal output.
Futures for the steelmaking ingredient climbed as much as 0.9% to US$109.40 a tonne in Singapore on Monday (Jan 12) as Chinese steelmakers gear up for seasonal restocking ahead of the Lunar New Year holiday. The metal is on track for its highest close since October 2024.
“Downstream restocking by steel mills is providing support for iron ore prices,” said Mengtian Jiang, an analyst at China-based consultancy Horizon Insights. “Additionally, the unseasonal rebound in hot-metal production is also bullish for raw materials, both through stronger physical demand and the margin pressure it exerts on steelmakers.”
Iron ore has rallied around 8% since the middle of December but the fundamentals point to some potential weakness. Imported inventories at Chinese ports rose for a sixth straight week to the highest level since April 2022, data from Shanghai SteelHome E-Commerce Co showed.
Equity markets are, however, taking a more positive view on iron ore this year, according to analysts at Jefferies Financial Group Inc. The shares of major miners have increased about 40% relative to the commodity since early 2025 and the markets are now pricing an average of US$100 per tonne for 2026, they wrote in a note.
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Singapore futures gained 0.6% to US$109.10 a tonne as of 11.50am local time while yuan-denominated contracts in Dalian rose 1.2%. Shanghai steel futures also advanced.
Uploaded by Arion Yeow
