MYSTEEL: Why have iron ore prices defied weakening fundamentals to stay firm?

Supply of imported iron ore cargoes to China has loosened further in recent months with growing carrier arrivals at Chinese ports, while market demand for the steelmaking ingredient is waning due to Chinese mills' reduced hot metal production during the winter lull season.

However, instead of tracking downward amid softening supply-demand fundamentals, imported iron ore prices in China have stayed surprisingly resilient recently. For example, Mysteel SEADEX 62% Australian Fines averaged $105.3/dmt so far in December, up from November's average of $103.8/dmt. And the index has hovered above the $100/dmt threshold since