Iron ore prices fall, but China’s outlook provides support

Iron ore prices for cargoes with 62% iron content fell below $100 per ton in early January, hitting a three-month low as Chinese steel mills scaled back production due to low profitability and the off-season.

Iron ore prices fall, but China’s outlook provides support

Additionally, iron ore imports to Chinese ports have been rising as international miners increased shipments toward the end of the year to meet annual targets. The drop in commodity prices, including iron ore, has also been exacerbated by a strong US dollar, driven by expectations that the Federal Reserve will implement fewer interest rate cuts this year. However, the decline in iron ore prices may be somewhat cushioned by a positive economic outlook in China, the world’s largest metal consumer.

Beijing pledges growth policies as services sector grows

Beijing has recently pledged to introduce "more proactive" macroeconomic policies, including lower interest rates, to boost growth. Moreover, data showed that China's services sector grew at its fastest pace in seven months in December, reflecting robust consumer demand.