Iron ore futures remained below CNY 750 per ton in late February, hovering at seven-month lows as mainland China markets reopened after the long Lunar New Year break. Trading on the DCE and SHFE was suspended from February 16 to 23 for the holidays, while equivalent contracts in Singapore declined over the same period. Meanwhile, industry data showed iron ore arrivals at major Chinese ports fell by 1.7 million tons in the latest week, offering some potential price support. Demand for the steelmaking raw material is expected to improve as economic activity in China resumes. Separately, Australia is closely monitoring negotiations between leading iron ore producers and China’s state-backed buyer, given the potential budgetary impact of lower ore prices. Iron ore is Australia’s top export commodity, and mining-related tax revenues remain a key pillar of federal finances.
