The latest price of imported iron ore in China has fallen $US4.8 to $US128 a tonne CFR. Ports iron ore stocks have risen, indicating a drop in demand. The freezing weather and heavy rain in some parts of China have negatively affected steel transportation, so it causes reducing iron ore demand.

In the coming days, most Chinese market participants go on holiday, so there is not any opportunity for market activities, including opening L/C and managing contracts. The Chinese New Year holiday starts on February 9. The next few days the factories are expected not to produce so much. Increasing factory activity and improving steel demand after the holidays will be the main contributing factors for iron ore demand.