Reuters reported that spot iron ore prices are expected to tick higher this week as Chinese steel mills replenish inventories ahead of the Lunar New Year in late January, although subdued steel prices could limit any buying interest.

An iron ore physical trader in Singapore said that "We expect the Chinese mills to come in and buy to restock as we approach the Chinese New Year. If the mills want to go on holidays they're going to have to do all their buying in December.”

Chinese steel mills normally heavily restock on iron ore ahead of the Lunar New Year, pushing spot prices higher.

But traders said they don't expect the Chinese to be as aggressive in replenishing inventories this time given sluggish steel demand.

(Sourced from Reuters)