Iron ore futures climbed above CNY 790 per tonne, starting the year on a firm footing amid strong demand and tight supply conditions in China. Steelmakers have been restocking ahead of the Lunar New Year holiday in February, helping to offset the impact of elevated shipments. Analysts also noted that raw material inventories in China remain relatively low, with some iron ore mines curbing output due to environmental protection measures. In addition, industry data showed that inventories of five major carbon steel products held by Chinese steel mills fell 1.1% last week to 3.81 million tonnes. Elsewhere, a private survey indicated that business activity in China remained expansionary for the seventh consecutive month in December, supported by stronger services activity and a renewed increase in factory output.
