24.02.202606:09:30UTC+00Iron Ore Holds Decline as China Trading Resumes

Iron ore futures stayed below CNY 750 per ton in late February, trading around a seven-month low as mainland Chinese markets reopened after the extended Lunar New Year holiday. Trading on the DCE and SHFE was halted from February 16 to 23, while corresponding contracts in Singapore also declined over that period. At the same time, industry data indicated that iron ore arrivals at major Chinese ports fell by 1.7 million tons in the latest week, providing some potential support for prices. Demand for the steelmaking raw material is expected to strengthen as economic activity in China gathers pace following the holiday.

Separately, Australia is closely watching negotiations between major iron ore producers and China’s state-backed purchasing entity, mindful of the potential impact of lower ore prices on the federal budget. Iron ore is Australia’s largest export, and tax receipts from the mining sector remain a central pillar of the country’s public finances.