Iron ore prices fall to 3-month low on weaker Chinese demand

Iron ore prices for 62% iron-content cargoes fell below $101 per ton on Friday, reaching a three-month low.

Iron ore prices fall to 3-month low on weaker Chinese demand

This was driven by signs of rising inventories and weakening demand in China. Disappointing economic data from China increased concerns about demand, as the country remains the world's largest iron ore consumer. The Caixin/S&P Global Manufacturing PMI dropped to 50.5 in December from 51.5 in November, below the expected 51.7. In response, Chinese authorities pledged to implement "more proactive" macroeconomic policies and lower interest rates this year to stabilize market sentiment.

Dollar strengthens on Fed outlook, investors shift to safer assets

Meanwhile, in the US, expectations for fewer rate cuts from the Federal Reserve boosted the dollar, putting pressure on commodities priced in greenbacks. Additionally, policy uncertainties surrounding the incoming Trump administration led investors to seek safer assets.