Steel Market Update

Advisory Bazaar Info Services

Iron ore prices rise on expectations of pre-holiday restocking

• After touching a five-month low, iron ore futures saw a recovery, supported by expectations of restocking by Chinese steel mills ahead of the Lunar New Year.

• On the Dalian Commodity Exchange (DCE), the most actively traded iron ore contract rose 0.66% to 758 yuan ($107.63) per metric ton, indicating a rebound after Monday’s 0.92% decline.

• On the Singapore Exchange (SGX), January-delivery iron ore prices increased 0.41% to $101.95 per ton, after previously slipping close to the $100 level.

• Steelmakers in China typically build up iron ore inventories ahead of the Lunar New Year, as logistics activities tend to slow during the holiday period.

• Supply remained constrained due to a preference for medium-grade cargoes and restrictions on certain BHP iron ore grades, which supported prices despite overall ample supply.

• According to Mysteel, shipments from major supplier countries Australia and Brazil rose 11.7% week-on-week to 29.67 million tons as of December 14.

• However, rising supply in Q4, weakening demand, and potential Chinese steel export regulations expected from 2026 may continue to weigh on iron ore prices.

• On the raw materials front, coking coal prices declined 0.62%, while coke prices strengthened by 0.27%.

• On the Shanghai Futures Exchange (SHFE), steel benchmarks were largely stable:

▪ Rebar rose 0.23%

▪ Hot-rolled coil increased 0.28%

▪ Wire rod fell 0.39%

▪ Stainless steel weakened by 1.67%