Iron ore futures held around CNY 820 per ton, close to the highest levels in almost a year, supported by signs of strong demand in top consumer China. Steelmakers are rebuilding inventories ahead of the Lunar New Year holiday in February, when activity typically slows. Supply conditions also remain supportive, with industry data showing slower shipments from Australia and Brazil last week and iron ore inventories at Chinese steel mills running below last year’s levels. Sentiment was further underpinned by expectations of additional policy support after China’s cabinet met on Friday to discuss a package of fiscal and financial measures to boost domestic demand, including steps to encourage household consumption. Investors now turn to this week’s trade data for further insight into the outlook.
