Prices held this month at $80/t as buyers re-stocked prior to the Chinese New Year - iron ore stocks are now above 2014 peaks. These price levels are encouraging marginal producers to re-enter the market. Imports to China increased 7% year-on-year in 2016 to exceed one billion tonnes, and shipments from India have recommenced. But the fundamentals required to support prices at these levels are lacking. Destocking in the Chinese property sector will result in a decline in steel consumption and therefore hot-metal production. Consequently, we expect a drop in iron ore demand over the course of the year. We forecast prices to drop as demand stagnates and supply rises. Our Q1-17 forecast remains at $70/t CFR.