The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.43 percent lower at 812.5 yuan (USD116.64) a metric ton, as of 0330 GMT.
The contract has lost 0.25percent so far this week. The benchmark February iron ore on the Singapore Exchange was 0.34percent lower at USD106.7 a ton.
Total stocks of imported iron ore across China’s major ports increased for the eighth straight week to a record high of 165.6 million tons, according to Mysteel data released on Janaury 15. However, steel mill stocks fell 2.1percent week-on-week and transaction volumes of portside iron ore dropped 20.3 percent week-on-week, as high prices and slim margins made steel mills hesitant about buying more ore.
Two of the world’s top miners, Rio Tinto and BHP, have partnered to extract up to 200 million metric tons of iron ore from two adjoining sites in of Western Australia’s Pilbara region.
Iron ore shipments to China already reached record highs in December, with shipments expected to grow in 2026. Compounded by diminishing domestic steel demand and weaker fundamentals, iron ore prices are expected to move lower in the medium term, said Chinese broker Galaxy Futures.
