Iron ore climbed to its highest level since February 2025, driven by optimism surrounding macroeconomic stimulus measures in China and ahead-of-holiday restocking activities.
In Singapore, Iron ore futures advanced as much as 2.1% to $108.90 a ton, holding steady at that level at 3:37 P.M. local time. In Dalian, contracts finished over 3% higher. Shares of major Australian miners, including Rio Tinto Group and BHP, traded higher as markets reacted to the price rally.
The People’s Bank of China announced that it would deploy multiple policy instruments, including potential interest rate reductions, in a flexible and efficient manner. The central bank, however, did not specify when these steps would be implemented.
Prices for the commodity also strengthened as buyers replenished inventories in anticipation of the Chinese Lunar New Year in February, according to CRU iron ore analyst. While supply currently remains plentiful, the analyst noted the risk of seasonal weather disruptions in the coming weeks, suggesting further upside potential for prices.
Iron ore posted a modest gain for 2025, overcoming headwinds from rising output among leading miners and signals of slowing steel production in China. Nonetheless, port stockpiles in China, the world’s largest consumer, have reached their highest level since late 2024.
Despite these ample inventories, raw materials have performed robustly at the start of 2026. Notably, copper has hit a historic peak, while other base metals have also seen significant gains.
