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2026.01.1605:32:08UTC+00Iron Ore Pressured by Soft Demand

Iron ore futures remained under CNY 820 per ton, poised to close the week on a lower note due to indications of waning demand from China's steel industry. Recent data shows a reduction in hot metal output—a crucial measure of iron ore consumption—by nearly 2 million tons, highlighting a slowdown in steel production and ongoing maintenance activities at some mills. Earlier this week, it was reported that China achieved record high iron ore imports in December and for the entire year of 2025, leading to substantial inventory levels at the year's outset. Concurrently, China experienced a surge in steel exports last month as traders expedited shipments ahead of Beijing's upcoming export license regulations slated for 2026. Additionally, Australian mining giants BHP Group and Rio Tinto disclosed plans to collaborate in Western Australia's Pilbara region, aiming to produce up to 200 million tons of iron ore annually in the upcoming decade.

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