BEIJING: Prices of Dalian iron ore fell on Monday to hit their lowest level in more than five months, as top consumer China’s plan to roll out a licence system from 2026 to regulate steel exports cast a shadow on demand prospects.
The most-traded iron ore contract on China’s Dalian Commodity Exchange (DCE) closed daytime trade 0.92 percent lower at 753 yuan (USD106.85) a metric ton. It touched its lowest level since July 10 at 748 yuan earlier in the session. The benchmark January iron ore on the Singapore Exchange fell 0.47 percent to USD101.5 a ton by 1012 GMT. The contract earlier hit an intraday low of USD100.4, close to Friday’s low of USD100.25 - the weakest level since July 17. China’s Ministry of Commerce said on Friday that it would add some steel products to its list of cargoes under export licence from January 1, 2026, as robust shipments have fuelled a growing protectionist backlash worldwide.
China’s ballooning steel exports have helped to offset a slump in domestic steel demand from the prolonged property market downturn, underpinning prices of the key steelmaking ingredient.
China’s crude steel output in November fell 3 percent from October, heading for six straight months of declines, curbed by thinner margins and dwindling domestic demand.
But the downside room for iron ore prices will be limited, with mills expected to start restocking feedstocks to sustain operations over the Chinese Lunar New Year holiday in February, analysts at Xinhu Futures said in a note. The Chinese Lunar New Year holiday in 2026 falls over February 15-23. Coking coal and coke, other steelmaking ingredients, however, rose by 3.16 percent and 0.3percent, respectively, following a slump on Friday. Most steel benchmarks on the Shanghai Futures Exchange lost ground. Hot-rolled coil shed 0.15 percent, wire rod slid 1.31percent and stainless steel dipped 0.68 percent while rebar added 0.13percent.
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