Iron ore futures slid to around CNY 750 per ton, with the key steelmaking raw material touching a five-month low after China’s Ministry of Commerce said it would place certain steel products under an export licensing regime starting January 1. The move came as strong Chinese steel exports triggered growing protectionist pushback in overseas markets. China’s steel sector has increasingly relied on exports in recent months due to weak domestic demand linked to a prolonged property market downturn. Market sentiment was further dampened by disappointing November economic data, as retail sales growth and industrial production missed expectations, fixed asset investment fell more than forecast, and new home prices declined for a 29th consecutive month. Looking ahead, iron ore prices may find some support as Chinese steel mills are expected to begin restocking feedstocks ahead of the Lunar New Year holiday in February to maintain production levels.
