China's iron ore price recovered from losses on Tuesday, despite weak construction industry consumption and mills cutting their output before the holiday.
The benchmark value of 62% Fe imported into northern China was changing hands at $127.65 per ton in morning trading, up 1.6% from Monday's close, according to Fastmarkets MB.
According to consulting firm Mysteel, about 50 steelmakers have announced their maintenance plans close to the upcoming Lunar New Year holidays, and some mills are planning to resume production in late February or March.
According to data from the National Bureau of Statistics, China's real estate gross domestic product fell by 2.9% in the fourth quarter of 2021 compared to the same period of the previous year.
"Consumption remains the weakest link in China's growth story right now, and that will largely continue for most of this year," said Louis Kuijs, Head of Asian Economics at Oxford Economics.
Brazilian miner Vale SA resumes production after heavy rains and said its annual iron ore production guide remains at 320-335 million tons.
Meanwhile, Rio Tinto expects 2022 iron ore shipments from the Pilbara region to be 320-335 million tons, slightly weaker than expected due to labor market conditions.
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