CRU: Iron ore steady amid Chinese holidays

The iron ore market has been largely calm, with China observing the Chinese New Year (CNY) holiday period, while demand in Europe and JKT has been slow to pick up. Supply has been somewhat weaker, but overall, the price has held steady.

Supply from Port Hedland remained unchanged w/w despite Roy Hill having no shipments due to maintenance, with this loss being offset by increased volumes from FMG. The Australian Bureau of Meteorology has identified a “very low” risk of a potential cyclone developing in the Northern Territory and moving towards the Pilbara region over the upcoming week. Additionally, BHP rail workers are set to strike for 24 hours this Friday as negotiations with the company persist. BHP stated it has measures to minimize this disruption, though port inventories are already very low and could exacerbate outflow loss.