Global shipments will progressively decline in January as the output rush from foreign mines comes to an end. However, because of the early stage’s high shipping volume, port arrivals will continue to be high.
Overall, there will be a plentiful supply. On the demand side, some steel mills will start producing again after the production limit expires, but the rate of this resumption will be slowed down by unfulfilled production limits linked to environmental protection and low profit.
Consequently, the output of pig iron will rise gradually. However, in the interim, most steel mills will prepare for Chinese New Year by stockpiling in January.
The overall demand for iron ore will rise in these conditions. Consequently, January could see a strong supply and demand for iron ore in the market.
Iron ore price increases will be restrained by conventional lull terminal demand, weak finished product demand, and the closure of some steel mills.
Regulatory risks could increase with rising ore prices. It is anticipated that January will see significant price fluctuations for iron ore.