The first month of 2024 saw iron ore kick-off to a strong start, mainly due to increasing prices and substantial imports by China. Looking at iron ore futures, many investors were optimistic that the world’s largest purchaser of ore would continue implementing sufficient stimulus measures to enhance demand.
Iron ore is a critical ingredient in steel manufacturing, with China remaining the largest manufacturer in the world. Investor optimism proved strong enough to overshadow China’s relatively subdued steel production data for December, as positive sentiment and several underlying factors continue to bolster the iron ore market.
For instance, on January 26 in Singapore, iron ore contracts ended at US $135.31 per metric ton. The hike came after two weeks of declines. According to Reuters, the contract was also 1% higher than the previous January low of $133.99 per ton. In reality, ore prices have been moving upward since August 2023.
