Iron ore futures held below CNY 820 per ton and were set to end the week lower, pressured by signs of slowing demand from China’s steel sector. Hot metal output, a key indicator of iron ore consumption, fell by nearly 2 million tons in the latest period, reflecting softer steel production and annual maintenance at some mills. Data released earlier this week showed that China recorded record iron ore imports both in December and for the full year 2025, keeping inventories elevated at the start of the year. Meanwhile, China also posted record steel exports last month, as traders front loaded shipments ahead of Beijing’s planned export license requirements scheduled for 2026. In other developments, Australia’s BHP Group and Rio Tinto announced plans to join forces in the Pilbara iron ore region, targeting production of up to 200 million tons of the steelmaking material from the next decade.
