According to the future price of iron ore, the price flow showed fluctuate in January, mainly caused by the Chinese government policy.

By the announcement from the Chinese government on December 29th, 2020, it decided to decrease the total output of crude steel in China this year, which caused the iron ore price to slide down dramatically.

However, although the latest policy could influence the iron ore futures price, most of the market participants still believed the iron ore price would remain strong in the medium and long term, due to the increasing demand from the market.