FX.co ★ Iron Ore Hits 1-Month Low

Iron ore futures have declined to approximately CNY 785 per ton, marking a one-month low. This drop is attributed to a surge in inventories at Chinese ports, reaching their highest levels since 2022, which indicates reduced demand amidst a plentiful supply. The weakening demand for steel has been exacerbated by the slowdown in construction activities in China as the Lunar New Year holidays approach, consequently affecting the prices of iron ore and other steelmaking inputs. Additionally, supply pressures have increased due to robust shipments from Brazil and Australia. Brazilian mining company Vale reported an iron ore production of 336.1 million tons for the year 2025, surpassing its output since 2018 and exceeding that of its competitor Rio Tinto's Pilbara operations in Australia. However, Vale has temporarily suspended operations at two mines following an overflow of water mixed with sediment over the weekend, which may help to mitigate further price declines.