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15.12.202506:06:14UTC+00Iron Ore Tumbles on Regulatory Fears

Iron ore futures have fallen to approximately CNY 750 per ton, reaching a five-month low. This decline follows the announcement by China's Ministry of Commerce regarding the implementation of an export licensing regime for certain steel products starting January 1. The decision arose as Chinese steel exports have sparked increasing protectionist measures in foreign markets. Recently, China's steel industry has become more dependent on exports due to diminished domestic demand, attributed to a sustained downturn in the property market. Investor sentiment was further weakened by underwhelming economic data for November, with retail sales and industrial production failing to meet expectations, fixed asset investment exceeding the predicted decline, and new home prices decreasing for the 29th consecutive month. Looking forward, there is potential for iron ore prices to gain some support, as Chinese steel mills are anticipated to replenish their inventories in preparation for the Lunar New Year holiday in February in order to sustain production levels.

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