Iron ore prices fall on China's deflation and weak demand

Iron ore prices for 62% iron content cargoes remained below $98 in early January, marking their lowest levels over three months.

Iron ore prices fall on China's deflation and weak demand

This decline follows economic data from China, the world's largest consumer, indicating increasing deflationary pressures. Chinese steel mills have been reducing production due to weaker demand and shrinking profit margins, with steel output expected to continue declining throughout the year. However, iron ore shipments to China have risen as port arrivals remain high, driven by overseas miners ramping up deliveries at the end of the year to meet annual targets.

China expands trade-in scheme, boosting iron ore outlook

On a positive note, China has expanded its consumer goods trade-in scheme to boost domestic demand, sparking optimism regarding the future outlook for iron ore demand.