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Iron is the most commonly used metal worldwide. It is mainly used in the construction, mechanical, automotive and machinery industries, often as the main ingredient in steel. As such, iron ore supply is an important factor for the global economy. In terms of usable iron ore production, Australia and Brazil are the two largest iron producers in the world

As markets expect additional economic stimulus at China's Central Economic Work Conference in early December, Chinese iron ore futures increased toward CNY 800 per tonne, the highest level in more than a month, and followed the increases for constructor's equity. Markets anticipate that in reaction to tariff threats from US President-elect Trump, Chinese leaders would increase the range of economic assistance measures at their disposal. Reports that lawmakers may set the fiscal deficit for 2025 at higher-than-expected levels are among the support measures. This will increase liquidity for indebted real estate developers, who are among the world's biggest users of steel rebar. Meanwhile, as export demand pushed furnaces to expand production targets, steel mills' output increased in tandem with the need for iron. Steel production in China rose to 81.9 million tons in October despite low domestic orders, driving exports in the period to surge to 11.2 million tons, the second-highest on record.

While Australia and Brazil are the largest exporters of iron ore, China is by far the largest importer of iron ore. As with many other commodities, Chinese demand significantly determines the global iron ore market. Nearly two-thirds of global iron ore exports to China are more than a billion tons.