Iron Ore Surged Driven by A Record China Import

TradingKey - Iron ore soared again to over $100 a ton, citing China's annual imports of steelmaking raw material hit a record, and its trade surplus rose sharply.

Futures in Singapore have risen over 4% for four straight days, since Thursday's close, rebounding from a struggling start to the year when traders were cautious about demand in China and awaited further stimulus.

According to the customs data on Monday, the world's largest iron ore consumer, China's iron ore imports, reached a record high of 1.24 billion tons last year, greatly boosting market sentiment. Meanwhile, the increase in imports has led to a rise in stockpiles, which stood at 14.66 million tons at ports as of Jan. 10, higher than a year earlier. In 2024, China's trade surplus reached $992 billion, and annual steel shipments hit the highest level since 2015.

“China's recent stimulus has boosted the outlook for steel demand. Some commodity exports remain strong due to early stockpiling ahead of Trump's tariffs. ” ANZ analyst Soni Kumari said. 

Iron ore dropped by more than a quarter over the past year, additionally affected by persistent weakness in China's real estate while supply from Australia and Brazil may make the outlook even tougher.