Iron ore prices rose on expectations of increased purchases by Chinese steel mills to replenish stocks ahead of the New Year holiday season.
The most active iron ore futures contracts on the Dalian Exchange for May delivery rose 0.84% to 780 yuan ($106.87) per tonne during today’s trading, after touching the lowest level since November 19 at 762.5 yuan per tonne during the session.
The January iron ore contracts on the Singapore Exchange rose 1.06% to 101.70 per tonne.
The recovery came on the back of expectations that Chinese steel mills will step up purchases to replenish stocks ahead of the New Year holiday season, according to Reuters.
Steel mills usually replenish iron ore stocks ahead of the Chinese New Year holiday, which begins on January 28 of the Gregorian year.
But the current high iron ore stocks in Chinese ports and concerns about weak demand next year have limited the positive impact of these expectations.
