Benchmark iron ore is starting December hovering near the top of its recent range, with 62% Fe fines delivered to China trading around 106–107 dollars a tonne.
On the Singapore Exchange, the front IODEX contract has climbed from roughly 104–105 a week ago, while the Platts-linked futures mirror that move after a modest overnight dip.
The centre of gravity remains China. Dalian’s most-traded January contract has pushed back above 790–800 yuan, equivalent to about 113 dollars a tonne, as traders bet on more infrastructure support and lower port fees.
Yet the rally lives on a paradox: Chinese steel output is on track to fall below one billion tonnes this year, but seaborne iron ore imports between January and October have already hit about 1.03 billion tonnes and could surpass last year’s record 1.24 billion.
Port inventories near 139 million tonnes are high by historical standards but have edged down in recent weeks, especially for medium-grade fines.
Iron Ore Rally Tests Gravity As China Buys Record Volumes. (Photo Internet reproduction)
Some analysts describe the latest surge as a “man-made bull market,” driven less by organic demand than by supply reshuffling, after a contract stand-off between China’s state buyer CMRG and BHP pushed mills toward Rio Tinto’s Pilbara blend and drained certain stockpiles.
It is the kind of tension that rewards flexible producers and traders more than planners and regulators. Technicals tell a similar story of strength with limits.
On the four-hour chart, prices show a clear pattern of higher highs and higher lows, riding above short-term averages with rising volume and overbought momentum.
The daily chart confirms a solid uptrend from mid-October, with a supportive band around 103–105 dollars. Weekly signals, though, suggest a maturing move as futures approach 52-week highs near 107.
The key pivot zone remains 100–105 dollars; a break below would signal that fundamentals are finally asserting themselves. ETF flows offer little additional fuel.
Iron-ore-focused products stay niche, while broader metals and mining funds have seen only modest interest compared with the flood into large equity and bond ETFs.
With Guinea’s Simandou and other new supply looming from 2026, today’s prices look more like a reprieve granted by market discipline than a vindication of heavy-handed industrial policy.
