Iron ore futures fell below CNY 790 per ton on Tuesday, drifting back toward one-month lows as pre-holiday steel demand weakened and global supply increased.

Chinese steel mills trimmed purchases ahead of the extended Lunar New Year holiday while preparing for scheduled maintenance, dampening near-term demand.

Port activity in China also softened, with industry data showing lower transaction volumes, suggesting mills are relying less on spot cargoes.

Port inventories rose 1.16% in the latest week, according to Steelhome data, while shipments from Australia and Brazil accelerated in late January, adding to supply pressures.

Elsewhere, China is reportedly helping Algeria reopen the Gara Djebilet mine, North Africa’s largest iron ore deposit.

Meanwhile, Australian miner Strike Resources signed a memorandum of understanding with Peruvian shipping company Naveria Petral for the proposed San Nicolas port project on Peru’s southern coast, aimed at supporting future iron ore exports.
Source: Trading Economics