Spot iron ore prices remained relatively stable in January with the TSI 62% index staying around US$41/t CFR. In the short-term, iron ore prices could be pushed up slightly, underpinned by improving steel mill margins and easing liquidity in China, as well as some temporary port closures in both Brazil and Australia due to pollution or weather issues. However, any gain in prices is expected to be short-lived, as market fundamentals have not changed. Chinese demand is set to have another year of decline, and we expect most production cuts will come from the contestable market where steel mills rely heavily on imported iron ore.
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Commodity market report | Jan 2016
Global iron ore short-term outlook January 2016
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