Iron ore futures fell toward CNY 780 per ton on Wednesday, hovering near a six-week low as signs of softening demand emerged ahead of the Lunar New Year slowdown, despite expectations for higher hot metal output.

Chinese steel mills remain active, with production of finished products such as rebar and hot-rolled coil accelerating last week.

However, mill restocking has paused as construction sites suspend work for the holiday period.

Port activity in China also weakened, with industry data showing lower transaction volumes, indicating reduced reliance on spot cargoes.

At the same time, shipments from Australia and Brazil accelerated in late January, adding to near-term supply pressure.

Elsewhere, China is reportedly assisting Algeria in reopening the Gara Djebilet mine, North Africa’s largest iron ore deposit.
Source: Trading Economics